(Committed versus discretionary costs) A list of committed and discretionary costs follows:

a. Classify each of the above costs as normally being either committed (C) or discretionary (D).

b. Which of these costs can be either committed or discretionary based on management philosophy?
C. For the expenses marked discretionary in part (a), provide a monetary or nonmonetary surrogate output measure. For each output measure, briefly discuss any objections that could be raised to it. LO.1

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Annual audit fees Annual report preparation and printing Building flood insurance Charitable contributions Corporate advertising Employee continuing education Equipment depreciation Interest on bonds payable Internal audit salaries Marketing research Preventive maintenance Property taxes Quality control inspection Research and development salaries Research and development supplies Secretarial pool salaries