A cost that is constant within a relevant range but differs outside the relevant range of activity is best classified as what type of cost?
A) Variable cost
B) Fixed cost
C) Mixed cost
D) Step cost

Question

Quizplus · Accepted Answer

Step costs remain constant within a certain range of activity, but they change once that range is exceeded, reflecting the pattern described in the question.

A Cost That Is Constant Within a Relevant Range but Differs