7. Which of the following statements about discretionary and engineered costs is/are likely to be true?

Note: multiple answers possible.

Group of answer choices

An organization knows with high certainty that 5 units of X is required to produce a unit of Y. X is therefore an engineered cost item

The relationship between inputs and outputs is less clear with discretionary costs

A cost item can be both a discretionary cost and engineered cost for a particular organization at the same point in time.

For engineered costs the outputs are more qualitative than quantitative

An organization should reduce all discretionary cost items to zero in order to maximise profit.