1. The linear equation Y - a+bX is often used to express cost formulas. Which of the following representations in this equation is correct? A. The b term represents variable cost per unit of activity. B. The a term represents variable cost in total. C. The X term represents total costs. D. The Y term represents total fixed costs. 1 2. Which of the following is an example of a discretionary fixed cost? A. Insurance. B. Taxes on real estate. C. Management training. D. Amortization of buildings and equipment. 3. Which of the following is an example of a committed fixed cost? A. A training program for salespersons. B. Executive travel expenses. C. Property taxes on the factory building. D. New product research and development. 4. What are discretionary fixed costs? A. They vary directly and proportionately with the level of activity. B. They have a long-term planning horizon, generally encompassing many years. C. They are made up of plant, equipment, and basic organizational costs. D. None of these options. ittad fixed costs