A step variable-cost function:
A)is often approximated with a continuous variable-cost function.
B)remains the same over a wide range of activity.
C)example includes adding additional warehouse space.
D)is fixed over the long run but not over the short run.

Question

Quizplus · Accepted Answer

Step variable-cost functions are often approximated with continuous variable-cost functions to simplify analysis, as they change in steps with activity levels.

A Step Variable-Cost Function