Costs That Result from a Company's Ownership or Use of Facilities

question 67

Multiple Choice

Costs that result from a company's ownership or use of facilities and its basic organizational structure are known as:

• A) discretionary fixed costs.
• B) committed fixed costs.
• C) discretionary variable costs.
• D) committed variable costs.
• E) engineered costs.

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Definitions:

Bidding Process

The procedure by which companies submit proposals or bids to win contracts, often used for projects, procurement, or services.

Project Champion

A person who passionately supports, promotes, and ensures the success of a project, often from a position of influence within the organization.

Long Lead Items

Materials, equipment, or components that have a long delivery time, potentially impacting the project schedule.

Equipment

The necessary items for a particular purpose, often referring to tools or machinery needed for an operation or activity.