Which Type of Fixed Cost (1) Tends to Be More

Multiple Choice

Which type of fixed cost (1) tends to be more long-term in nature and (2) can be cut back more easily in bad economic times without doing serious harm to organizational goals and objectives? $\begin{array} { | l | c | c | } \hline & \text { Long Term in } & \text { Can be Cut Back More Easily In } \\&\text { Nature }&\text { Bad Ficonomic Times }\\\hline 1 & \text { Committed } & \text { Committed } \\\hline 2 & \text { Committed } & \text { Discretionary } \\\hline 3 & \text { Discretionary } & \text { Committed } \\\hline 4 & \text { Discretionary } & \text { Discretionary } \\\hline 5 & \text { Committed } & \text { No difference between committed and discretionary cost } \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5