The planning horizons for committed fixed costs and discretionary fixed costs are generally the same.

Question

Quizplus · Accepted Answer

Committed fixed costs typically have a longer planning horizon as they are more difficult to adjust or eliminate in the short term, such as long-term contracts, leases, or investments in equipment. Discretionary fixed costs, on the other hand, can be adjusted more easily and have a shorter planning horizon.

The Planning Horizons for Committed Fixed Costs and Discretionary Fixed