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

Question

Quizplus · Accepted Answer

A step-fixed cost graph shows costs that remain constant over a range of activity levels, then jump to a higher level once a threshold is crossed, creating a series of staggered horizontal lines moving upward to the right.

When Graphed, a Typical Step-ﬁXed Cost Appears As