Question

Classify the following fixed costs as normally being either committed or discretionary:

Answer 1

The following fixed costs have typically been committed or discretionary.

What is the fixed cost ?

• The term fixed cost refers to a cost that doesn't change with an increase or drop in the number of goods or services produced or vended.
• Fixed costs are charges that have to be paid by a company, independent of any specific business conditioning.
• This means fixed costs are generally circular, in that they do not apply to a company's product of any goods or services.
• Companies can generally have two types of costs — fixed or variable costs which together affect in their total costs. arrestment points tend to be applied to reduce fixed costs.
• Fixed costs can be direct or circular and may impact profitability at different points on the income statement.

Therefore, if we have depreciation on structures, it is committed. The following fixed costs have typically been committed or discretionary.

Me alone is marketing. It is a decision. Observe that research is optional. these long-term leases on equipment. It is devoted. Yeah. E We pay pensions to the business that employs retirees. It is dedicated, and F is in charge of the management, growth, and training. Additionally, it is up to you. Okay, there concludes the response. The following fixed costs have typically been committed or discretionary.

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