Using account analysis,what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours,$85 for 201- 400 kilowatt hours,and $135 + or - for 401-600 kilowatt hours?
A)Fixed
B)Mixed
C)Step
D)Variable

Question

Quizplus · Accepted Answer

The cost of utilities in this scenario is a step cost. This is because the cost of electricity increases in steps as more kilowatt hours are used. For example, the cost for the first 200 kilowatt hours is $40, but the cost for 201-400 kilowatt hours jumps up to $85. This means that the cost of utilities is not a fixed or variable cost, and it is not a mixed cost since the steps are clearly defined.

Using Account Analysis,what Type of Cost Is Utilities If You