Final answer:
The correct answer is C. real estate taxes, as they represent a fixed commitment that does not change regardless of the level of production.The correct answer is option C.
Step-by-step explanation:
An example of a committed cost is real estate taxes. Committed costs are a type of fixed cost that a company incurs as a result of owning assets or entering into long-term contracts. These costs do not change in the short run and are not dependent on the level of production. Examples of fixed costs include rent on a factory or retail space, the cost of machinery to produce products, and real estate taxes on property owned by the business.
Unlike variable costs, committed costs must be paid regardless of the business activity levels. In the given options, real estate taxes represent a fixed commitment that the firm has made and cannot easily change or avoid. Therefore, item C, real estate taxes, is the correct answer.The correct answer is option C.