Question

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Answer 1

Committed fixed costs do not change with the level of production and include depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Step-by-step explanation:

Committed fixed costs are costs that do not change regardless of the level of production. Examples of committed fixed costs include depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses. These costs are fixed because they remain the same even if the level of production fluctuates. They are considered committed because they are long-term costs that cannot be easily adjusted in the short run.