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committed costs are a. costs that management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers. b. costs that are likely to respond to the amount of attention devoted to them by a specified manager. c. costs that are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. d. amortization of costs that were capitalized in previous periods.

Respuesta :

asarwar

Committed costs are the costs that are governed mainly by past decisions that established the present levels of organizational and operating capacity and that only change steadily in response to small changes in capacity. Thus, Option C pertains to the correct answer.

A committed cost refers to an investment that a business has already made and cannot recover in any way, as well as obligations already made that the business entity cannot get out of. The businesses should be aware of which costs are committed costs when reviewing firm expenditures for possible asset sales or cutbacks.

Fixed pay of employees, rent costs, etc. are some examples of committed costs.

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