Which of the Following Is an Example of a Discretionary

question 172

Multiple Choice

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

• A)contract workers
• B)property taxes on a factory building
• C)depreciation on a factory building
• D)insurance on a building

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Definitions:

Bankruptcy

The state of being bankrupt, being legally declared unable to pay debts; a petition to a court by an individual who is stating that he or she cannot pay any debt incurred.

Collection Agency Transaction

A financial activity where a collection agency attempts to recover funds owed by an individual or business.

Outsourcing

An arrangement by which a task, operation, or job that could be performed by employees within a company is instead contracted to another company; generally viewed as contracting out a specific business function to another company rather than having your own company manage that specific work.

Patient Ledger

A record detailing the financial transactions, charges, and payments for the services rendered to a patient by a medical practice.