One full-time clerical worker is needed for every 750 accounts receivable. The total wages of the accounts receivable clerks is an example of a:
A) fixed cost.
B) step-variable cost.
C) mixed cost.
D) curvilinear cost.

Question

Quizplus · Accepted Answer

The cost of clerks is step-variable because it increases in steps as the number of accounts receivable increases. Additionally, it is not a fixed cost as it changes with the volume of accounts receivable, and it is not a mixed or curvilinear cost as it does not have both fixed and variable components, nor does it have a curvilinear relationship with the volume of accounts receivable.

One Full-Time Clerical Worker Is Needed for Every 750 Accounts