A Committed Fixed Cost Can

question 71

Multiple Choice

A committed fixed cost can

• A)never be eliminated.
• B)be eliminated in the short term and in the long term.
• C)be eliminated in the long term but not in the short term.
• D)be eliminated in the short term but not in the long term.

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Definitions:

Required Return

The minimum return an investor expects to achieve by investing in a specific asset, considering its risk.

Variable Cost

Charges that adjust in relation to the volume of goods or services produced by an enterprise.

Expansion

describes the phase in a business or an economy's lifecycle where it is growing in size, reach, or production capabilities.

Adjacent Lot

A parcel of land located directly next to or in close proximity to another parcel.