"Discretionary costs" are
Answer(s): A
Discretionary costs are those that are incurred in the current period at the "discretion" of management and are not required to fill orders by customers.
"Controllable costs" are
Answer(s): B
Controllable costs can be affected by the efforts of a manager.
Which of the following is the best example of a variable cost?
Variable costs vary directly with the level of production. As production increases or decreases, material cost increases or decreases, usually in a direct relationship.
The sum of the costs necessary to effect a one-unit increase in the activity level is a(n)
Answer(s): C
A marginal cost is the sum of the costs necessary to effect a one-unit increase in the activity' level.
A cost that may be eliminated by performing an activity more efficiently is a(n)
Avoidable costs are those that may be eliminated by not engaging in an activity or by performing it more efficiently.
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