Which term describes a cost resulting from the existence of the organisational structure and premises used by the firm?

A) Discretionary
B) Fixed
C) Committed
D) Engineered

Organisational Structure

The system of rules, roles, and responsibilities within an organization that determines how it operates and how its employees work together to achieve business objectives.

Committed Cost

Expenses that a company has formally pledged or is obligated to incur, often fixed costs related to contracts or legal commitments.

Firm

A business entity involved in commercial, industrial, or professional activities, whether incorporated or not.