What type of expense results when organizations acquire many multi-period service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments?
A)managed fixed expenses
B)committed fixed expenses
C)discretionary fixed expenses
D)period expenses

Question

Quizplus · Accepted Answer

Committed fixed expenses result from acquiring many multi-period service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments. These expenses are fixed because they are not affected by changes in volume or level of activity within the relevant range.

What Type of Expense Results When Organizations Acquire Many Multi-Period