An example of a committed fixed cost is:
A) management training seminars.
B) a long-term equipment lease.
C) research and development.
D) advertising.

Question

Quizplus · Accepted Answer

A long-term equipment lease is an example of a committed fixed cost because it is a cost that is fixed and cannot be easily adjusted or reduced, regardless of changes in production or sales levels. Management training seminars, research and development, and advertising are all examples of discretionary fixed costs that can be adjusted or reduced depending on the company's needs and budget.

An Example of a Committed Fixed Cost Is