Fixed costs classified according to the time frame perspective are known as:

Question

Quizplus · Accepted Answer

Committed costs are fixed costs that cannot be easily changed in the short term, while discretionary costs are fixed costs that can be easily eliminated or reduced without significantly affecting the operation of a business. This classification is based on the time frame perspective, which makes option C the correct answer. Option A refers to the classification of costs based on their traceability to a particular product or service, while option B refers to the constancy of cost behavior. Option D refers to the classification of costs incurred in producing a product and in periodical operation respectively.

Fixed Costs Classified According to the Time Frame Perspective Are