Which of the following would not be considered a committed fixed cost ( a cost that is incurred regardless of the level of activity during the period)?
A) depreciation expense
B) amortization expense
C) advertising expense
D) rent expense

Question

Quizplus · Accepted Answer

Advertising expense is a variable cost because it can be adjusted based on the level of activity or sales. The other options (depreciation expense, amortization expense, and rent expense) are considered committed fixed costs as they must be paid regardless of the level of activity.

Which of the Following Would Not Be Considered a Committed