Final answer:
The classification of fixed costs according to the time frame perspective into committed and discretionary costs means costs that are obligatory over a long-term, such as equipment depreciation, and those that can be adjusted by management decisions, like advertising, respectively.
Step-by-step explanation:
Fixed costs, from a time frame perspective in a business setting, can be classified as either committed costs or discretionary costs. Committed costs refer to long-term fixed costs that a company has already agreed to and cannot easily change in the short term, such as leases or depreciation on equipment. On the other hand, discretionary costs are those fixed costs that can be changed or avoided relatively easily at management discretion, like advertising or research and development.The correct answer to the student's question is therefore C. committed cost and discretionary cost. Unlike variable costs which vary with production levels, fixed costs remain constant regardless of the volume of goods or services produced. Examples of fixed costs include rent on a factory or retail space, and the cost of machinery or equipment.