If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:
A) straight variable cost assumptions.
B) fixed costs assumptions.
C) step-fixed cost assumptions.
D) mixed cost assumptions.

Question

Quizplus · Accepted Answer

When a cost's step-cost behavior follows very narrow steps, it means the cost increases in very small, frequent increments. This behavior can be approximated using straight variable cost assumptions, as the cost closely aligns with changes in activity level, similar to how variable costs behave.

If a Cost's Step-Cost Behavior Follows Very Narrow Steps, the Costs