An example of a step variable-cost function is the cost of material-handling labour when inputs are acquired in discrete quantities.

Question

Quizplus · Accepted Answer

In a step variable-cost function, costs increase in a step-like manner rather than in a continuous manner. An example of this is the cost of material-handling labor when inputs are acquired in discrete quantities. As more materials are acquired and more labor is needed to handle them, the cost of labor will increase in steps. Therefore, the statement is true.

An Example of a Step Variable-Cost Function Is the Cost