Salaries paid to shift supervisors are an example of a
A) step-variable cost.
B) step-fixed cost.
C) variable cost.
D) mixed cost.

Question

Quizplus · Accepted Answer

Shift supervisor salaries are typically fixed costs that do not change in the short term based on changes in production volume or activity levels. However, they may increase in a step-wise manner (i.e. in fixed increments) as additional supervisors are hired to manage additional shifts or production lines. Therefore, they are considered step-fixed costs.

Salaries Paid to Shift Supervisors Are an Example of a