Within relevant range, cost function which cost does not change in narrow ranges of activity is called

A fixed cost function
B variable cost function
C step variable cost function
D step fixed cost function

Correct Answer: step variable cost function

Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.
Bissoy MCQ
#Commerce #Costing

Related Questions

Method which considers lowest and highest values of cost driver and cost within relevant range is called
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