Capacity costs committed to only in the shorter term are termed as:

A) discretionary fixed costs.
B) relevant costs.
C) committed fixed costs.
D) flexible resources.

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Flexible Resources

Assets, such as labor or equipment, that can be adjusted or redirected in response to changing production or operational requirements.