Discretionary costs: are variable in relation to the level of activity, such as the production or sales volume. are often related to the core part of business, such as a long-term production capacity. O are hardly changed in the short-term. O include research and development costs.

Discretionary costs: are variable in relation to the level of activity, such as the production or sales volume. are often related to the core part of business, such as a long-term production capacity. O are hardly changed in the short-term. O include research and development costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

Discretionary costs:
O are variable in relation to the level of activity, such as the production or sales volume.
O are often related to the core part of business, such as a long-term production capacity.
O are hardly changed in the short-term.
O include research and development costs.

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