Fixed costs that cannot be removed if the business is to keep function…

Question

Fixed costs that cannot be removed if the business is to keep functioning are described as:

Accepted Answer

D. Committed

1. Management has no real choice.
2. The company needs them to operate.
3. They are committed fixed costs.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

Answer

Converted

Answer

Contingent

Answer

Discretionary

Fixed costs that cannot be removed if the business is to keep functioning are described as:

Keep practising Cost Classification