Salaries paid to shift supervisors is an example of a
A)step-variable cost.
B)step-fixed cost.
C)variable cost.
D)mixed cost.

Question

Quizplus · Accepted Answer

Shift supervisors are typically salaried employees with a fixed rate of pay regardless of the level of production or sales. This makes their salaries a step-fixed cost, where the cost increases only when a new supervisor is hired or when an existing supervisor is promoted to a higher level.

Salaries Paid to Shift Supervisors Is an Example of a