Discretionary Fixed Costs

question 102

Multiple Choice

Discretionary fixed costs:

• A)have a planning horizon that covers many years.
• B)may be reduced for short periods of time with minimal damage to the long-run goals of the organization.
• C)cannot be reduced for even short periods of time without making fundamental changes.
• D)are most effectively controlled through the effective utilization of facilities and organization.

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Definitions:

Stock-option Plans

An employee benefit scheme that grants the right to buy company stock at a discount or a specified fixed price, often used to attract and retain employees.

Firm-level Performance

Firm-level performance is the measure of a company's performance outcomes and achievements, such as profitability, revenue growth, or market share, evaluating its success in the industry.

Individual-level Performance

A measurement of an employee's work output and achievements as evaluated independently, rather than as part of a team.

Faith-based Businesses

Businesses that are operated based on religious principles and values, often aiming to have a positive impact on society alongside financial goals.