Caring Change Medical Practice specializes in plastic surgery. Which of the following costs is most likely to be a committed cost in its operations?
A) Medical supplies
B) Office supplies
C) Hourly wages paid to bookkeeper
D) Facility rental

Question

Quizplus · Accepted Answer

Facility rental is most likely to be a committed cost because Caring Change Medical Practice cannot easily change or adjust this cost in the short term. It is generally a fixed cost that the practice must pay regardless of whether or not they perform any surgeries in a given period. Medical supplies, office supplies, and hourly wages paid to bookkeepers are more likely to be variable costs that can be adjusted depending on the amount of business the practice is generating.

Caring Change Medical Practice Specializes in Plastic Surgery