The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Committed Fixed Costs

Long-term fixed costs that a business incurs from its commitments, such as leases or contracts, which are difficult to change in the short term.

Depreciation

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear over time.

Highly Trained Engineers

Professionals with advanced education and training in engineering disciplines, contributing expertise to projects and innovations.