Multiple choice

Directions: Choose the correct option for the given question.

______ cost refers to fixed cost continue to be incurred, when there is no production.

  1. Semi fixed

  2. Semi-variable

  3. Committed

  4. Overhead

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Committed costs are fixed costs that remain even when production is zero, such as rent or depreciation on long-term assets.

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