What Is Characteristic of a Committed Fixed Cost

question 55

Multiple Choice

What is characteristic of a committed fixed cost?

• A)It can be easily changed.
• B)It often involves a long-term contract.
• C)It changes when output changes.
• D)It includes direct materials.

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Definitions:

MRP System

Material Requirements Planning System, a computer-based system used for planning and scheduling production and inventory control.

Bill of Materials

A comprehensive list detailing all materials, components, and assemblies required to build or manufacture a finished product.

Flexibility

The ability of a system, process, or entity to adapt to changes, variations, or unforeseen circumstances without significant loss in efficiency or performance.