Capacity costs committed to only in the shorter term are termed as:
A) discretionary fixed costs.
B) flexible resources.
C) committed fixed costs.
D) relevant costs.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are those that can be adjusted or eliminated in the short-term. Committed fixed costs, on the other hand, are long-term and cannot be easily adjusted. Flexible resources and relevant costs are not necessarily related to the time period in which they are committed.

Capacity Costs Committed to Only in the Shorter Term Are