Which of the Following Statements Is True of Discretionary Costs

question 38

Multiple Choice

Which of the following statements is true of discretionary costs?

• A) They arise from day-to-day operational decisions.
• B) They include conversion cost, direct material costs.
• C) They have measurable cause-and-effect relationship between output and resources used.
• D) They have high level of uncertainty.

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Definitions:

City Streets

Refers to the public roads and thoroughfares in urban areas which play a crucial role in transportation, economic activity, and daily life.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal government intervention.

Political Life

The arena of activity that revolves around the acquisition and exercise of power in government or public affairs, often involving politicians, governments, and political parties.

Democratic

Relating to the political ideology that emphasizes equality, social justice, and the participation of citizens in political decisions, or associated with the Democratic Party in the United States.