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CMA Q: What are committed costs?

A. Those that fluctuate in total in response to small changes in the rate of use of capacity.?

 B. Governed mainly by past decisions that established the current levels of operating and organizational capacity and that only change slowly in response to small changes in capacity.

C. Those management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers.

D. Likely to respond to the amount of attention devoted to them by a specified manager.

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Question added by Deleted user
Date Posted: 2016/03/22
Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

B IS THE ANSWER.  Committed cost is an investment the business has already made.

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