Costs that will continue regardless of production level are
A)capacity costs.
B)committed costs.
C)discretionary costs.
D)opportunity costs.

Question

Quizplus · Accepted Answer

Committed costs are long-term costs that continue regardless of the level of production or activity. These costs are often associated with assets that have been purchased or long-term contracts that have been agreed upon. Capacity costs are similar to committed costs, but specifically refer to the costs associated with maintaining a certain level of production capacity. Discretionary costs are costs that can be easily adjusted or eliminated depending on the level of production or activity. Opportunity costs refer to the cost of choosing one option over another, and are not necessarily related to production levels.

Costs That Will Continue Regardless of Production Level Are