What Is Committed Cost?

1.	What Is Committed Cost?
Answer» Committed COST is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a SHORT run basis. They arise from the possession of PRODUCTION facilities, equipment, an organization setup, etc. Some examples of committed costs are: plant and equipment depreciation, taxes, insurance PREMIUM and RENT charges. Committed cost is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a short run basis. They arise from the possession of production facilities, equipment, an organization setup, etc. Some examples of committed costs are: plant and equipment depreciation, taxes, insurance premium and rent charges.

Answer»

Committed COST is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a SHORT run basis. They arise from the possession of PRODUCTION facilities, equipment, an organization setup, etc.

Some examples of committed costs are: plant and equipment depreciation, taxes, insurance PREMIUM and RENT charges.

Committed cost is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a short run basis. They arise from the possession of production facilities, equipment, an organization setup, etc.

Some examples of committed costs are: plant and equipment depreciation, taxes, insurance premium and rent charges.

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