The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

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Committed fixed costs are costs that do not change with the level of production or sales and are difficult to adjust in the short term. Depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses are all examples of committed fixed costs.

The Following Costs Are All Examples of Committed Fixed Costs