Which of the following expenses is an example of a committed fixed expense?
A) investment in production facilities
B) advertising
C) preventive maintenance
D) employee training programs

Question

Quizplus · Accepted Answer

Investment in production facilities is a committed fixed expense because it involves a significant capital expenditure that is necessary for the smooth functioning of the business in the long term. This expense cannot be easily reduced or eliminated without significant repercussions and is considered a fixed cost.

Which of the Following Expenses Is an Example of a Committed