In a small construction firm, another crew supervisor is added for every 10 workers employed.This is an example of a _____.
A)purely variable cost
B)discretionary fixed cost
C)step cost
D)mixed cost

Question

Quizplus · Accepted Answer

This is an example of a step cost because the cost (adding another crew supervisor) only increases when the number of workers employed reaches a specific threshold (10 workers). Before that threshold, the cost remains the same.

In a Small Construction Firm, Another Crew Supervisor Is Added