Asked by
Majid Ibrahim
on Oct 11, 2024
Verified
A step-variable cost is a cost that is obtained in large chunks and that increases or decreases only in response to fairly wide changes in activity.
Step-Variable Cost
A cost that remains constant for a certain level of activity, but changes in step fashion once a certain threshold is surpassed.
Activity
An event that causes the consumption of overhead resources.
- Understand the concept of step-variable costs and how they behave in response to changes in activity levels.
Verified Answer
WG
Learning Objectives
- Understand the concept of step-variable costs and how they behave in response to changes in activity levels.
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