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.

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Definitions:

Greater Than

A mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Z-scores

Standardized scores that measure the distance of a score from the mean, indicating how many standard deviations an element is from the mean.

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1.

Greater Than

A mathematical expression indicating that one quantity is larger than another.