A list of committed and discretionary costs follows.

Annual audit fees ............Internal audit salaries

Annual report preparation and printing ....Marketing research

Building flood insurance ........Preventive maintenance

Charitable contributions .........Property taxes

Corporate advertising ..........Quality control inspection

Employee continuing education ......Research and development salaries

Equipment depreciation ..........Research and development supplies

Interest on bonds payable ...........Secretarial pool salaries

a. Classify each of these 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 (a), provide a monetary or nonmonetary surrogate output measure. For each output measure, briefly discuss any objections that could be raised to it.