Question 1
Which of the following statements is true of discretionary costs?
◦ They arise from day-to-day operational decisions.
◦ They include conversion cost, direct material costs.
◦ They have measurable cause-and-effect relationship between output and resources used.
◦ They have high level of uncertainty.
Question 2
Advertising cost is an example of a discretionary cost.
◦ true
◦ false