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