Discretionary Fixed Costs

question 25

Multiple Choice

Discretionary fixed costs:

• A) vary directly and proportionately with the level of activity.
• B) have a long-term planning horizon,generally encompassing many years.
• C) are made up of plant,equipment,and basic organizational costs.
• D) usually arise from annual decisions by management.

---

Definitions:

Proprietary Advantage

An edge a company gains by keeping its innovations, proprietary processes, or data secret to prevent others from copying or using them without permission.

Contractual Advantage

An upper hand or benefit a party has in a deal or agreement due to specific contract terms.

Distributorship

A business authorized to sell or distribute a company's goods or services in a specific area or market.

Radical Innovations

Innovations that represent a significant departure from existing practices and often create new markets or transform existing ones.