On page 92 of our text it says that committed costs are costs arising from the possession of facilities, equipment, and a basic organization. Discretionary costs are determined by management as part of the periodic planning process in order to meet the organization's goals. They have no obvious relationship with levels of capacity or output activity. Therefore my assumptions of Committed and Discretionary costs are as follows.
Committed Costs Discretionary Costs
Administrator $60,000 Assistant $35,000
Accounting and Billing $15,000 Two Secretaries $42,000
Consulting $10,000 Supplies $35,000
Salaries $46,000 Advertising and
Promotion $9,000
Transportation $10,000 Professional Meetings and Dues $14,000
Security $12,000 Two Social Workers $70,000
Custodial $13,000
Totals $166,000 Totals $205,000
When I first took a look at this assignment, I thought it would be a bit difficult to prove my point by using the text as a reference guide. I did that my citing the......
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Approximate Word Count: 1082
Approximate Pages: 5 (260 words per double-spaced page) |