(Committed versus discretionary costs) Following is a list of committed and discre¬ tionary costs:

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

b. Which of the above costs may be either committed or discretionary based on management philosophy?

c. For the expenses marked discretionary in part

a, provide a monetary or non¬ monetary surrogate output measure. For each output measure, briefly discuss any objections that may be raised to it.

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