One full-time clerical worker is needed for every 750 accounts receivable.The total wages of the accounts receivable clerks is an example of a:

A) fixed cost.
B) step-variable cost.
C) mixed cost.
D) curvilinear cost.

Question

Jordan Gronda · Accepted Answer

Final Answer : B, Explanation :  The number of clerical workers required is directly proportional to the number of accounts receivable, making it a step-variable cost. However, the wage paid to each clerk may remain fixed regardless of the number of accounts, making it a fixed cost. Therefore, the total wages of accounts receivable clerks is an example of a step-variable cost.

One full-time clerical worker is needed for every 750 accounts receivable.The total wages of the accounts receivable clerks is an example of a:

A) fixed cost.
B) step-variable cost.
C) mixed cost.
D) curvilinear cost.

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Learning Objectives

Related questions

One full-time clerical worker is needed for every 750 accounts receivable.The total wages of the accounts receivable clerks is an example of a:A) fixed cost.B) step-variable cost.C) mixed cost.D) curvilinear cost.

Definitions

Learning Objectives

Learning Objectives

Related questions

One full-time clerical worker is needed for every 750 accounts receivable.The total wages of the accounts receivable clerks is an example of a:

A) fixed cost.
B) step-variable cost.
C) mixed cost.
D) curvilinear cost.