Committed fixed costs are also known as:
A) Capacity costs
B) Managed fixed costs
C) Mixed costs
D) Step costs

Question

Quizplus · Accepted Answer

Committed fixed costs, also known as capacity costs, are those fixed costs that a company incurs to maintain its current level of operations or capacity. These costs are not easily changed in the short term and include expenses such as depreciation on buildings and equipment, real estate taxes, and insurance.

Committed Fixed Costs Are Also Known As