Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Cost of an existing lease
A)Discretionary fixed cost
B)Committed fixed cost

Question

Quizplus · Accepted Answer

The cost of an existing lease is a committed fixed cost because it relates to a long-term contract or agreement that cannot be easily changed or cancelled. It has already been incurred and cannot be avoided in the short-term.

Select the Appropriate Classification of Each of the Costs Listed