Select the appropriate type of fixed cost for each cost listed below.
-Depreciation on equipment
A)Discretionary
B)Committed

Name: Select the appropriate type of fixed cost for each cost listed below. -Depreciation on equipment A)Discretionary B)Committed
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Question

Quizplus · Accepted Answer

Depreciation on equipment is a committed fixed cost because it is a long-term investment in equipment that the company has already made and has a contractual or legal obligation to pay. The cost cannot be easily changed in the short term.

Select the Appropriate Type of Fixed Cost for Each Cost