Using account analysis, what type of cost are utilities if you are charged $45 for the first 400 kilowatt hours, $100 for 401-600 kilowatt hours, and $165 + or - for 601-900 kilowatt hours?
A)Fixed
B)Mixed
C)Variable
D)Step

Question

Quizplus · Accepted Answer

The cost of utilities in this scenario is a step cost because the cost per kilowatt hour changes at certain intervals (400 kWh, 600 kWh) rather than being a consistent rate throughout.

Using Account Analysis, What Type of Cost Are Utilities If