Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are known as:
A)step-ﬁxed costs.
B)step-variable costs.
C)semivariable costs.
D)curvilinear costs.
E)mixed costs.

Question

Quizplus · Accepted Answer

Step-fixed costs remain constant within a certain level of activity but will abruptly increase once a new level of activity is reached. This is in contrast to step-variable costs, which increase or decrease in proportion to changes in activity levels. Semivariable costs have both fixed and variable components, and mixed costs are a combination of fixed and variable cost elements. Curvilinear costs have costs that increase or decrease at a non-linear rate.

Costs That Remain the Same Over a Wide Range of Activity