Explain the Difference Between a Committed and a Discretionary Fixed

question 92

Essay

Explain the difference between a committed and a discretionary fixed cost.

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Definitions:

Implied Assumption

An unstated understanding or expectation inherent in a situation or agreement.

Known Risk

A hazard or risk that is identified or anticipated before an activity or decision is made.

Plaintiff

The party who initiates a lawsuit by making a complaint against another party, called the defendant, in a court of law.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products, regardless of fault or intent.