The most likely example of a committed cost item is:
A) employee training
B) rent for plant premises
C) depreciation on buildings and equipment
D) B and C

Question

Quizplus · Accepted Answer

Committed costs are those that a company has made a commitment to pay and cannot easily change or avoid in the short term. Rent for plant premises and depreciation on buildings and equipment are examples of such costs, as they are typically fixed and long-term in nature. Employee training, on the other hand, is more variable and can be adjusted more easily.

The Most Likely Example of a Committed Cost Item Is