A type of indirect costs,called _______ are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.
A) fixed costs
B) variable costs
C) direct costs
D) committed costs
E) indirect costs

Question

Quizplus · Accepted Answer

Committed costs are costs which the organization commits itself to within an operating year, and which often are spent in advance or at the front end of a manufacturing/sales cycle. Fixed costs are costs that remain constant regardless of the level of production or sales, while variable costs change in relation to production or sales. Direct costs are costs that can be easily traced to a specific product or service. Indirect costs are costs that cannot be traced directly to a specific product or service.

A Type of Indirect Costs,called _______ Are Costs Which the Organization