Which of the Following Is an Example of a Discretionary

question 59

Multiple Choice

Which of the following is an example of a discretionary fixed cost?

• A) Insurance.
• B) Taxes on real estate.
• C) Management training.
• D) Amortization of buildings and equipment.

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Definitions:

MRP

Material Requirements Planning is a system for calculating the materials and components needed to manufacture a product.

Productivity

The measure of how efficiently inputs are converted into outputs in a production process.

Residential Use

Pertains to property or resources utilized for dwelling purposes, including houses and apartments designed for people to live in.

Commercial Use

The use of products, services, or information for business purposes or financial gain, as opposed to personal or educational use.