Which of the Following Is an Example of a Discretionary

question 22

Multiple Choice

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

• A)direct labour
• B)depreciation on a factory building
• C)insurance on a building
• D)property taxes on a factory building

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Definitions:

IFRS Guidelines

The set of international accounting standards and principles that guide how financial statements should be prepared and disclosed.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount recorded on the balance sheet.

Input Market

The marketplace where resources or raw materials that a company uses to produce its products are bought and sold.

Long-lived Assets

Assets that are expected to provide economic benefits over a period of time longer than one fiscal year.