The lease cost of office computers is a _____ for an accounting firm.
A) variable cost
B) discretionary fixed cost
C) committed fixed cost
D) semi-variable cost

Question

Quizplus · Accepted Answer

The lease cost of office computers is a committed fixed cost because it is a long-term and necessary expense that cannot be easily adjusted without incurring significant costs. It is not a variable cost because it does not change with fluctuations in the level of production or sales, it is not discretionary because it is required for the day-to-day operation of the business, and it is not semi-variable because it does not have both fixed and variable components.

The Lease Cost of Office Computers Is a _____ for an Accounting