Committed fixed costs would include:
A) advertising.
B) research and development.
C) depreciation on buildings and equipment.
D) contributions to charitable organizations.
E) expenditures for direct labor.

Question

Quizplus · Accepted Answer

Committed fixed costs are those costs that a company has obligated itself to pay, regardless of its level of production or sales. Depreciation on buildings and equipment is a committed fixed cost because it represents a systematic allocation of the cost of a long-term asset over its useful life, and this expense occurs regardless of the company's operational activities.

Committed Fixed Costs Would Include