A step variable-cost function ________.
A) is fixed over the long run but not over the short run
B) is often approximated with a continuous variable-cost function
C) remains the same over a wide range of activity
D) example includes adding additional warehouse space

Question

Quizplus · Accepted Answer

A step variable-cost function is often approximated with a continuous variable-cost function because it changes in steps with activity levels, but for simplicity, it is treated as continuous in cost analysis.

A Step Variable-Cost Function ________