Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease (Walther, 2012).
Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect or brought forward any differences in a business activity. As it is better understood, taxes are usually set by the government, and the amount set can last for a specific length of time until circumstances push the government to revise the taxes. Therefore,
Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect or brought forward any differences in a business activity. As it is better understood, taxes are usually set by the government, and the amount set can last for a specific length of time until circumstances push the government to revise the taxes. Therefore,