Question 1
Managers can reduce capacity-based fixed costs by measuring and managing ________.
◦ unused capacity
◦ variable costs
◦ engineered costs
◦ discretionary costs
Question 2
Which of the following is NOT a discretionary cost?
◦ the cost of social networking activities to promote a product
◦ the cost of total quality management training for executives
◦ legal costs
◦ the cost to train factory general managers to use a new activity based management system