Using account analysis, what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours, $85 for 201- 400 kilowatt hours, and $135 for 401-600 kilowatt hours?
A) Fixed
B) Mixed
C) Step
D) Variable

Question

Quizplus · Accepted Answer

Based on the given information, it can be seen that the cost of utilities changes in steps as the KWH usage increases. Therefore, it is a step cost.

Using Account Analysis, What Type of Cost Is Utilities If