A mortgage payment would most likely be identified as a _____.
A)purely variable cost
B)discretionary fixed cost
C)committed fixed cost
D)mixed cost

Question

Quizplus · Accepted Answer

A mortgage payment is a committed fixed cost, as it is a necessary expense that must be paid in order to maintain ownership of the property. It is not a discretionary expense, as it cannot be easily eliminated or reduced without extreme consequences, and it is not a purely variable cost or a mixed cost, as the amount of the mortgage payment usually stays the same each month.

A Mortgage Payment Would Most Likely Be Identified as a _____