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:

Registration Statement

A legal document filed with the Securities and Exchange Commission by companies wishing to issue new securities to the public, containing financial and other significant details.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Unqualified Opinion

In auditing, an unqualified opinion is a report that expresses a clean audit result, indicating that the financial statements of an entity are fairly and appropriately presented, without any identified exceptions.

Materially Overstated

A significant overestimation of financial figures, leading to inaccurate financial reporting.