Committed costs in a project are
A) those costs budgeted for the scheduled activities.
B) planned value of the project.
C) budgeted costs of the work scheduled.
D) the amounts that have been obligated or encumbered for materials, equipment, or services.

Question

Quizplus · Accepted Answer

Committed costs refer to the amounts that have already been allocated or set aside for materials, equipment, or services, and have been earmarked for expenditure. These costs are also referred to as obligated or encumbered costs. They are considered fixed costs as they cannot be changed once the commitment has been made. Options A, B, and C refer to other types of costs.

Committed Costs in a Project Are