What Are Discretionary Fixed Costs

question 7

Multiple Choice

What are discretionary fixed costs?

• A) They vary directly and proportionately with the level of activity.
• B) They have a long-term planning horizon, generally encompassing many years.
• C) They are made up of plant, equipment, and basic organizational costs.
• D) None of these options.

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Definitions:

Annual Rates

The interest rate for a period of one year, often used in contexts such as loans or investments.

Diesel Fuel

A type of fuel derived from petroleum, used primarily in diesel engines, which are known for their efficiency and power.

Liter

A metric unit of volume equal to one cubic decimeter, used to measure liquids and other volumetric quantities.

Intentional Torts

Deliberate acts committed by an individual that cause harm or injury to another person, leading to civil liability.