Costs that result from a company's ownership or use of facilities and its basic organizational structure are termed as:
A)discretionary costs.
B)committed fixed costs.
C)discretionary variable costs.
D)curvilinear costs.
E)engineered costs.

Question

Quizplus · Accepted Answer

Committed fixed costs result from a company's ownership or use of facilities and its basic organizational structure. These costs cannot be easily reduced or eliminated without negatively impacting the company's operations or long-term goals, such as rent or salaries for permanent employees. Discretionary costs, on the other hand, are more flexible and can be adjusted or eliminated with greater ease, such as marketing expenses or travel costs. Discretionary variable costs vary based on the level of activity, while curvilinear costs increase at a decreasing rate as output increases and engineered costs are those that can be directly traced to a product or service.

Costs That Result from a Company's Ownership or Use of Facilities