Committed fixed costs usually arise from the possession of facilities,equipment and a basic organizational structure.

Question

Quizplus · Accepted Answer

Committed fixed costs are costs that a company is obligated to pay regardless of its level of activity or sales volume, and they often result from owning property, equipment, or buildings, which form a basic organizational structure. Therefore, the statement is true.

Committed Fixed Costs Usually Arise from the Possession of Facilities,equipment