Costs that result from a company's ownership or use of facilities and its basic organizational structure are termed:
A)discretionary fixed costs.
B)committed fixed costs.
C)discretionary variable costs.
D)committed variable costs.
E)engineered costs.

Question

Quizplus · Accepted Answer

Committed fixed costs are costs that are necessary for the basic organizational structure and ownership of facilities. These costs are typically difficult to change or reduce in the short-term, such as rent, property taxes, and salaries for essential employees.

Costs That Result from a Company's Ownership or Use of Facilities