Even If Operations Are Interrupted or Cut Back,committed Fixed Costs

question 97

True/False

Even if operations are interrupted or cut back,committed fixed costs remain largely unchanged in the short term because the costs of restoring them later are likely to be far greater than any short-run savings that might be realized.

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Definitions:

Day-to-Day Operations

The regular, routine activities necessary for an organization or business to function effectively on a daily basis.

Corporation

A legal entity created under state law, recognized as separate from its owners, with its own rights, privileges, and liabilities.

Alien Corporation

A corporation formed in another country but doing business in the United States.

Domestic Corporation

In a given state, a corporation that is organized under the law of that state.