Discretionary Fixed Costs

question 31

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 organisation.
• C)cannot be reduced for even short periods of time without resulting in significant damage to the long-run goals of the organization.
• D)are most effectively controlled through the effective utilization of facilities and organization.

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Definitions:

Overdue

The state of being delayed beyond the expected or usual time.

Consideration

Something of value exchanged between parties in a contract that binds them to the agreement, can be in the form of money, services, or goods.

Financial Intermediary

is an institution that acts as the middleman between investors and firms, facilitating investments and financial transactions.

Holder-in-due-course Status

A legal status that provides a holder of a negotiable instrument certain rights, free from many defenses and claims that could be asserted against the original party.