The annual expenses associated with the multi-period category is independent of actual usage of the resource and are referred to as:
A)variable costs.
B)committed fixed expenses.
C)mixed costs.
D)overhead expenses.

Question

Quizplus · Accepted Answer

Committed fixed expenses are those that are incurred regardless of the level of activity or usage of the resource. They are also known as "fixed costs" or "period costs." Variable costs, on the other hand, are directly proportional to the level of activity or usage of the resource. Mixed costs have both fixed and variable components, while overhead expenses are a broader term that encompasses various types of indirect costs incurred by a business.

The Annual Expenses Associated with the Multi-Period Category Is Independent