Question

Briefly describe an organization with which you are familiar. Describe a situation when a manager in...

  1. Briefly describe an organization with which you are familiar. Describe a situation when a manager in that organization could use cost behavior information and how the manager could use the information.
  2. Compare discretionary fixed costs to committed fixed costs. Think of an organization with which you are familiar. Give two examples of discretionary fixed costs and two examples of committed fixed costs which that organization may have. Explain why the costs you have chosen as examples fit within the definitions of “discretionary fixed costs” and “committed fixed costs.”
0 0
Add a comment Improve this question
Answer #1

Sign Up to Unlock the answer FREE

Already have an account? Log in

*Reliance Industries limited is an Indian company which deals in telecommunications, textiles, energy, natural resources etc.
*Manager in this organisation can use the cost behaviour information for:
a) evaluating the performance of the department, departmental manager and performance of the whole organization.
b) It can be used it assess the per unit cost of goods and services.
c) It can be used for identifying variances and removing them.
d) cost behavior information is useful for management for taking decisions.
COMPARISON OF DISCRETIONARY AND COMMITED FIXED COST:
Discretionary fixed costs are those which can be eliminated or reduced.. and are period specific.
Example:*1.Advertising of products:because they can be eliminated and they are not an obligation for the organization.
2.training and development of employess:they are called discretionary because it depends on the organisation whether or not to incur these costs and they are not an obligation.
Commited fixed costs are an obligation for the company which have to be mandatarily met.
Example:1.government dues or statutory dues: they have to be necessarily met that's why they are called commited fixed costs.
2.Payment to key managerial personnel:they are called commited fixed costs because the organization has an obligation for it.

Add a comment
Know the answer?
Add Answer to:
Briefly describe an organization with which you are familiar. Describe a situation when a manager in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT