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Which of the following statements is false with respect to committed fixed costs? Multiple Choice They...

Which of the following statements is false with respect to committed fixed costs?

Multiple Choice

  • They represent organizational investments with a multiyear planning horizon.

  • They should not be reduced for short periods of time because the costs of restoring them later would most likely exceed any cost savings realized in the short term.

  • They usually arise from annual decisions by management to spend on certain fixed cost items.

  • They remain constant, in total, regardless of changes in the level of activity within the relevant range.

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Which of the following statements is false with respect to committed fixed costs?
They represent organizational investments with a multiyear planning horizon.
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