Costs that result from a company's ownership or use of facilities and its basic organizational structure are known as:
A) discretionary fixed costs.
B) committed fixed costs.
C) discretionary variable costs.
D) committed variable costs.
E) engineered costs.

Question

Quizplus · Accepted Answer

Committed fixed costs are expenses that a company incurs from its ownership or use of facilities and its basic organizational structure. These costs are not easily changed in the short term and include things like rent, insurance, and salaries of permanent employees.

Costs That Result from a Company's Ownership or Use of Facilities