Costs That May Be Essential to the Long-Run Achievement of the Organization's

question 32

Multiple Choice

Costs that may be essential to the long-run achievement of the organization's goals,but that managers can almost reduce to zero in the short-run,are called ________.

• A) capacity costs
• B) committed fixed costs
• C) discretionary fixed costs
• D) mixed costs

---

Definitions:

Actual Costs

The real costs incurred by a business during a specific period, as opposed to budgeted or forecasted costs.

Standard Costs

Predetermined or estimated costs of manufacturing, used for budgeting and assessing performance.

Management Tool

A management tool encompasses various strategies, techniques, or software used by managers to improve decision-making, efficiency, and effectiveness within an organization.

Ledger

A group of accounts for a business.