Question

An example of a discretionary fixed cost would be: Group of answer choices Taxes on the factory. Depreciation on manufacturing equipment Factory Liability Insurance required by state law Research and development

Answer 1

Research and development

Step-by-step explanation:

Fixed cost is cost that does not vary with output. It is cost that is incurred regardless of the units of output produced

Discretionary fixed cost is cost that is incurred at the discretion of the management of a company.

A company can decide to undertake research and development or not to. So, it is an example of discretionary fixed cost