Step costs change abruptly at different levels of cost-driver activity.

Name: Step costs change abruptly at different levels of cost-driver activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Step costs are costs that remain fixed within a certain range of activity levels, but increase or decrease in discrete steps when activity levels cross specific thresholds. This means that the cost remains the same until the next level of activity is reached, at which point the cost will increase or decrease abruptly.

Step Costs Change Abruptly at Different Levels of Cost-Driver Activity