When graphed, a typical step-fixed cost appears as:
A) a horizontal line.
B) a vertical line.
C) a series of staggered horizontal lines
D) a diagonal line that slopes downward to the right.
E) a diagonal line that slopes upward to the right.

Question

Quizplus · Accepted Answer

Step-fixed costs remain constant over a range of activity, but jump to a higher level once that range is exceeded, creating a series of staggered horizontal lines when graphed.

When Graphed, a Typical Step-Fixed Cost Appears As