Suppose a cost's step-cost behaviour follows very narrow steps.What assumptions can be used to approximate the costs?
A)variable cost assumptions
B)fixed cost 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 can be approximated as a variable cost because the cost changes with the level of activity, albeit in small, discrete steps rather than continuously.

Suppose a Cost's Step-Cost Behaviour Follows Very Narrow Steps