Which statement is true concerning committed costs?
A)Committed costs continue regardless of production level.
B)Committed costs are the same as discretionary costs.
C)Committed costs are always non-value added.
D)Committed costs are always fixed costs.

Question

Quizplus · Accepted Answer

Committed costs are costs that a company must pay regardless of its level of production or sales. Examples include rent, property taxes, and insurance. These costs are fixed and cannot be reduced in the short term.

Which Statement Is True Concerning Committed Costs