Multiple choice

Directions: Choose the correct option and complete the sentence.

Discretionary cost is known as

  1. managed cost

  2. programmed cost

  3. both (1) and (2)

  4. incremental cost

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Discretionary costs are costs that arise from periodic management decisions regarding the maximum outlay to be incurred on certain activities. They are also known as managed or programmed costs.

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