An example of a committed fixed cost would be:
A) taxes on real estate.
B) management development programs.
C) public relations costs.
D) advertising programs.

Question

Quizplus · Accepted Answer

Committed fixed costs are expenses that a business must incur regardless of the level of production or sales. Taxes on real estate are an example of a committed fixed cost because they must be paid regardless of the business's revenue or profit. Management development programs, public relations costs, and advertising programs are not necessarily committed fixed costs, as their expenses may vary depending on the level of production or sales.

An Example of a Committed Fixed Cost Would Be