Significant reductions in committed fixed costs can usually be made on a temporary basis without seriously impairing the long-term goals of a firm.

Question

Quizplus · Accepted Answer

Committed fixed costs are long-term, cannot be easily altered in the short term, and are essential for the operation of a firm. Reducing these costs significantly and temporarily could impair the firm's ability to achieve its long-term goals, as these costs often relate to essential aspects like facilities, equipment, and long-term personnel.

Significant Reductions in Committed Fixed Costs Can Usually Be Made