Which of the Following Is NOT a Discretionary Cost

question 107

Multiple Choice

Which of the following is NOT a discretionary cost?

• A) the cost of social networking activities to promote a product
• B) the cost of total quality management training for executives
• C) legal costs
• D) the cost to train factory general managers to use a new activity based management system

Calculate optimal pricing to maximize revenue in variable demand scenarios.

Understand the role of revenue management in maximizing supply chain profits.

Evaluate the trade-offs between selling in bulk or on the spot market.

Grasp the concept of shifting demand from peak to off-peak periods to optimize utilization.

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Definitions:

Cash Inflows

The total amount of money being transferred into a company, typically from operational, investment, and financing activities.

Investment Projects

Initiatives undertaken by a business or individual involving the allocation of resources with the expectation of future benefits, such as profits or interest.

Profitability Index

Profitability Index (PI) is an investment appraisal technique that calculates the ratio between the present value of future cash flows and the initial investment cost, helping to determine the desirability of a project.

Cash Outflows

Money or funds leaving a business, typically for expenses, investments, or other payments.