If an individual chunk of step costs applies to a large range of cost-driver activity,the step costs are treated as ________ within that range.
A) variable costs
B) mixed costs
C) fixed costs
D) semivariable costs

Question

Quizplus · Accepted Answer

Step costs are fixed costs within a specific range of activity, meaning they will not change even if the level of activity changes. Only when the activity level increases beyond that range will the cost increase, but then it will be a new higher fixed cost for that new range of activity.

If an Individual Chunk of Step Costs Applies to a Large