Which of the following is an example of a step-fixed cost?
A)cost of disposable surgical scissors,which are purchased in increments of 100
B)cost of soaking solution to clean jewellery (each jar can soak 50 rings before losing effectiveness)
C)cost of tuition at $300 per credit hour up to 15 credit hours (hours taken in excess of 15 hours are free)
D)cost of disposable gowns used by patients in a hospital

Question

Quizplus · Accepted Answer

Step-fixed costs are costs that remain fixed over a certain range of activity but jump to a different fixed level once that range is exceeded. The cost of disposable surgical scissors, purchased in increments of 100, is a step-fixed cost because the total cost remains constant for each increment of 100 units purchased, but increases to a new level when the next increment is needed.

Which of the Following Is an Example of a Step-Fixed