Fixed Costs Are Those Costs That Do Not Change as the Level

question 20

Essay

Fixed costs are those costs that do not change as the level of activity increases or decreases.However, fixed costs may be classified as discretionary or committed.
Required:
a.Explain the differences in these classifications and give an example of each.
b.Discuss why managers should consider the impact of these costs in the decision-making process in times of falling profits.

---

Definitions:

Personality Traits

Enduring characteristics that describe an individual's behavior across different situations.

Degree Programs

Structured courses of study offered by educational institutions that lead to a formal qualification or degree upon completion.

Self-development

The act of improving oneself through activities that enhance skills, knowledge, or personal qualities.

Training Professionals

Specialists who design, conduct, and manage training programs to improve employee skills and knowledge.