If a Cost Can Be Reduced to Zero in the Short

question 27

Multiple Choice

If a cost can be reduced to zero in the short run without significantly harming the organization,the cost is a

• A)variable cost.
• B)committed cost.
• C)discretionary cost.
• D)product cost.

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Definitions:

Cost, Volume, Profit

An analysis tool used in managerial accounting to determine how changes in costs and sales volume affect a company's profit.

Setting Step

The process of establishing a stage or level in a procedure or activity.

Approximate Price Level

An estimated cost or price range of goods or services in a particular market or sector, often used for budgeting or planning purposes.

Common Approaches

Standard or widely accepted methods or procedures used to achieve a particular goal or complete a task.