A property tax is an example of a
A) mixed cost.
B) committed fixed cost.
C) discretionary cost.
D) engineered cost.

Question

Quizplus · Accepted Answer

A property tax is a committed fixed cost because it is a mandatory expense that must be paid by the property owner and is not easily adjustable in the short run. It is not a mixed cost because it does not have components of both fixed and variable costs. It is not a discretionary cost because it is not an optional expense. It is not an engineered cost because it does not involve the use of engineered standards to calculate its cost.

A Property Tax Is an Example of a