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 jewelry (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 remain constant over a range of activity but will change once that range is exceeded. The cost of disposable surgical scissors, which are purchased in increments of 100, is an example of a step-fixed cost because the cost remains the same until the next increment of 100 scissors is needed.

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