A Hospital Adds a New Addition and Needs to Acquire

Multiple Choice

A hospital adds a new addition and needs to acquire some new equipment for the addition.The cost driver for the equipment is patient-days per month.The new addition increases the patient-days per month outside the relevant range.What type of equipment costs will change as a result of the addition?

A) discretionary fixed costs
B) discretionary variable costs
C) committed fixed costs
D) committed variable costs