Which of the Following Would Not Be Considered a Committed

question 74

Multiple Choice

Which of the following would not be considered a committed fixed cost ( a cost that is incurred regardless of the level of activity during the period) ?

• A) depreciation expense
• B) amortization expense
• C) advertising expense
• D) rent expense

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Definitions:

Installments

Periodic payments made towards settling a debt or purchasing a good, spreading out the total cost over a period of time.

Fair Credit Reporting Act

A federal law that regulates the collection, dissemination, and use of consumer credit information to ensure accuracy and privacy.

Fair Debt Collection Practices Act

A US federal law aimed at preventing abusive, deceptive, and unfair practices by debt collectors when collecting debts.

Open-end Credit

A pre-approved loan between a financial institution and borrower that can be used repeatedly up to a certain limit and can be repaid prior to payments coming due.