Which of the following statements is false with respect to committed fixed costs?

Multiple Choice

• They represent organizational investments with a multiyear planning horizon.

• They should not be reduced for short periods of time because the costs of restoring them later would most likely exceed any cost savings realized in the short term.

• They usually arise from annual decisions by management to spend on certain fixed cost items.

• They remain constant, in total, regardless of changes in the level of activity within the relevant range.