Discretionary Fixed Costs

question 82

Multiple Choice

Discretionary fixed costs:

• A)vary directly and proportionately with the level of activity.
• B)have a long-term planning horizon,generally encompassing many years.
• C)are made up of plant,equipment,and basic organizational costs.
• D)none of the above.

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Definitions:

Non-Interest-Bearing Note

A promissory note that does not accrue interest over its lifetime, typically requiring the borrower to repay only the principal amount.

Actuarial Information

Data and analysis related to the calculation of insurance risks and premiums, often based on statistical methods.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Bondholders

Individuals or entities that hold bonds issued by corporations, municipalities, or governments and are entitled to receive the bond's interest payments plus the return of the bond's principal upon maturity.