Which of the following is the best example of a committed fixed cost for a coffee shop?
A) wages
B) coffee cups
C) coffee beans
D) property taxes

Question

Quizplus · Accepted Answer

Property taxes are a committed fixed cost for a coffee shop as they are a necessary expense that the business must pay regardless of the level of sales or production. Wages, coffee cups, and coffee beans are all variable costs as they will vary based on sales and production levels.

Which of the Following Is the Best Example of a Committed