These costs are incurred to maintain certain facilities and cannot be quickly eliminated. The management has little or no discretion in these costs. These costs are termed as:

CS Executive · Cost and Management Accounting · PYQS · December 2020
These costs are incurred to maintain certain facilities and cannot be quickly eliminated. The management has little or no discretion in these costs. These costs are termed as:
(A) Policy and Managed Costs
(B) Committed Costs
(C) Discretionary Costs
(D) Step Costs

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost Concepts

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