Multiple choice

Directions: Choose the correct option for the given question.

Fixed overhead cost is a _____ cost.

  1. variable

  2. fixed

  3. semi fixed

  4. semi variable

  5. committed
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Fixed overhead costs are considered committed costs because they arise from the organization's structure and capacity, and they must be paid regardless of the level of activity.

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