A cost that is incurred because of a long-range policy decision is known as a:

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Committed costs are costs that result from long-term decisions, commitments or contracts with third parties, and cannot be easily changed in the short-term. These costs are typically associated with investments in property, plant and equipment, long-term financing arrangements or other similar long-term commitments. Discretionary costs, on the other hand, are costs that can be easily adjusted in response to short-term changes in demand or other factors, such as advertising or research and development costs. Continuous costs and standard costs are not relevant to the definition of long-term policy decisions.

A Cost That Is Incurred Because of a Long-Range Policy