_____ result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments.
A) Managed fixed expenses
B) Committed fixed expenses
C) Discretionary fixed expenses
D) Period expenses

Question

Quizplus · Accepted Answer

Committed fixed expenses result when organizations acquire many multiperiod service capacities by paying cash up front or by entering into an explicit contract that requires periodic cash payments. These expenses are fixed in nature and cannot be reduced in the short term, regardless of the level of business activity.

_____ Result When Organizations Acquire Many Multiperiod Service Capacities by Paying