A cost with a flat cost line within a relevant range that shifts to another level when volume significantly changes is a(n):
A) Flat line cost.
B) Step-wise cost.
C) Curvilinear cost.
D) Incremental cost.
E) Fixed cost.

Question

Quizplus · Accepted Answer

A step-wise cost (also known as a step cost or a semi-fixed cost) has a constant cost within a certain volume range, but changes to a different level once that range is exceeded. This type of cost is often associated with the addition of new equipment or the hiring of additional staff to handle increased demand.

A Cost with a Flat Cost Line Within a Relevant