A committed fixed cost can
A)never be eliminated.
B)be eliminated in the short term and in the long term.
C)be eliminated in the long term but not in the short term.
D)be eliminated in the short term but not in the long term.

Question

Quizplus · Accepted Answer

Committed fixed costs are those that a company has made a long-term commitment to and cannot easily change or eliminate in the short term. However, over the long term, with enough planning and restructuring, these costs can potentially be reduced or eliminated. Examples include long-term lease agreements or contracts for equipment.

A Committed Fixed Cost Can