Committed fixed costs usually must be incurred for some time and require greater effort to change or eliminate, whereas discretionary fixed costs are flexible and can be increased, eliminated, or changed on short notice if needed. Additionally, committed fixed costs are not immediately affected by changes in cost drivers, unlike discretionary fixed costs which change in direct proportion to cost drivers.

1. How do committed fixed costs differ from discretionary fixed costs? OA Discretionary fixed
costs usually must be incurred for some time, and thus a great effort is needed to change or
eliminate them, OB, Discretionary fixed costs are flexible and could be increased or eliminated
entirely on short notice if necessary, where Oc. Discretionary fixed costs are not immediately
affected by changes in the cost-driver level, where committed fixed change in OD. Discretionary
fixed costs change in direct proportion to the cost-driver level, where committed fixed costs are
not immediately where committed fixed costs are flexible and could be increased or eliminated
entirely on short notice if necessary. committed fixed costs usually must be incurred for some
time, and thus greater effort is needed to change or eliminate them. direct proportion to the cost-
driver level. affected by changes in the cost-driver level.
Solution
A C