Fixed Costs That Are the Result of Previous Management Decisions

question 251

Multiple Choice

Fixed costs that are the result of previous management decisions that current managers have no control over in the short run are called ________ fixed costs.

• A)discretionary
• B)committed
• C)standard
• D)past

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Definitions:

Proxy

A person authorized to act for another, especially in a vote, or the act of authorizing someone to vote on one's behalf in corporate matters.

Quorum Requirements

The minimum number of members who must be present at any of its meetings to make the proceedings of that meeting valid.

Directors

Members of a corporation's board responsible for making major decisions and overseeing the managerial aspects of the company's operations.

Corporate Earnings

The profit a company makes after deducting all costs, expenses, interest, and taxes from its total revenue.