Classify the total costs of each of the following as
-Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day
A) Variable
B) Fixed
C) Mixed
D) Step

Question

Quizplus · Accepted Answer

The cost of salaries for quality inspectors is a step cost because it remains constant for a certain level of units inspected (up to 500 units per day per inspector) and then increases in a step-like manner when an additional inspector is needed.

Classify the Total Costs of Each of the Following as