vinukuttanmeister

 Profile Answers by vinukuttanmeister 

• Sep 29th, 2009

 

Committed cost is also called as sunk cost which means which is already inured to purchase some assets.

kumudkr

 Profile Answers by kumudkr 

• Nov 17th, 2009

 

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.

Lakshmikanth Dandu

 Profile Answers by Lakshmikanth Dandu 

• Jan 27th, 2011

 

Committed cost is also know as sunk cost, it is cost which has already been incurred in the past. It is not relevant for decision making and is caused by complete abandonment as against temporary shut down. This should be constrasted with discretionary costs, which are avoidable costs.

Bharat Chander

• Aug 4th, 2014

 

Committed cost is sunk cost which has been already incurred in past and which has to be incurred by entity for future obligations. This cost is not relevant for any decision making in short run.