A Committed Fixed Cost Is One That Cannot Be Changed

question 138

True/False

A committed fixed cost is one that cannot be changed over the short run.

---

Definitions:

Spot Price

The current market price at which a particular asset, like a commodity, currency, or security, can be bought or sold for immediate delivery.

Futures Price

The agreed-upon price for a financial instrument or commodity to be sold or bought at a future date, used primarily in futures contracts trading.

Convergence Property

The characteristic of a mathematical series or economic model to approach a limit or a stable point over time.

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument becomes due and is to be paid in full.