Essay
Fixed costs are those costs that do not change as the level of activity increases or decreases.However, fixed costs may be classified as discretionary or committed.
Required:
a.Explain the differences in these classifications and give an example of each.
b.Discuss why managers should consider the impact of these costs in the decision-making process in times of falling profits.
Correct Answer:
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a.Discretionary fixed costs can be chang...View Answer
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Correct Answer:
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