In a corporate setting,a mortgage payment would be identified as a ________.
A) purely variable cost
B) discretionary fixed cost
C) committed fixed cost
D) mixed cost

Question

Quizplus · Accepted Answer

A mortgage payment is a committed fixed cost because it is a regular payment that a company needs to make as a commitment to owning or renting a property. It cannot be easily reduced or eliminated without serious consequences, and it is not affected by changes in company activity levels or production volumes.

In a Corporate Setting,a Mortgage Payment Would Be Identified as a ________