_____ are costs incurred that provide long-term activity capacity, usually as the result of strategic planning.
A) Discretionary fixed expenses
B) Committed fixed expenses
C) Mixed costs
D) Step-variable costs

Question

Quizplus · Accepted Answer

Committed fixed expenses are costs that a company has committed to over the long term, often as part of strategic planning. These expenses provide the capacity for the company's activities and are not easily altered in the short term. Examples include long-term leases, salaries of key personnel, and depreciation on equipment and buildings.

_____ Are Costs Incurred That Provide Long-Term Activity Capacity, Usually