Question

Step costs are ________. ANSWER Unselected costs that are incurred for every unit of volume Unselected fixed over a small range of activity and then jump to a new fixed level with moderately small changes in volume Unselected costs that do not change in total despite wide changes in volume Unselected costs that contain both variable and fixed cost components

Answer 1

Fixed over a small range of activity and then jump to a new fixed level with moderately small changes in volume

Step-by-step explanation:

Step costs are fixed cost in nature, but it changes in steps, it don not change on a per unit basis, but after a certain activity level, it changes and then gets fixed up till next step of change.

It changes after a set of range is completed under that.

It can also be said to have variable as well as fixed component but, it as it do not change on per unit basis, the statement is not correct, as variable cost changes with each unit, Semi variable cost is the correct word for it.