An example of a committed fixed cost is:
A)a training program for salespersons.
B)new product research and development.
C)property taxes on the factory building.
D)executive travel expenses.

Question

Quizplus · Accepted Answer

Property taxes on the factory building are a committed fixed cost because they are required to be paid regardless of the level of production or sales. They are necessary for the operation of the business and cannot be easily avoided or reduced. The other options listed are not necessarily committed fixed costs, as they can be adjusted or cancelled depending on the business's needs and priorities.

An Example of a Committed Fixed Cost Is