Select the appropriate item for each of the definitions listed below.
-must be purchased in chunks
A)committed fixed cost
B)discretionary fixed cost
C)mixed cost
D)step cost

Question

Quizplus · Accepted Answer

A step cost is a cost that remains fixed over a small range of activity but jumps to a higher amount when activity increases beyond that range. Step costs are typically purchased in chunks and can result in stair-step cost behavior.

Select the Appropriate Item for Each of the Definitions Listed