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:

Federal Depository Bank

A financial institution that is authorized to hold deposits for the Federal Reserve System, providing banking services to the government and the public.

Paychecks

Documents issued to employees to pay for their services, representing the net amount after deductions like taxes and retirement contributions.

Notes Payable

Financial obligations represented by written promises to pay specified amounts of money at future dates.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services purchased on credit.