Which one of the following sentences about step costs is true?
A)Step costs increase with each additional unit produced.
B)Step costs have no relation to number of units produced.
C)Step costs are constant within certain ranges of activity but differ outside those ranges of activity.
D)Step costs are variable within narrowly defined ranges of activity, but constant over wider ranges of activity.

Question

Quizplus · Accepted Answer

Step costs are costs that remain constant within a certain range of activity but increase or decrease once that range is exceeded. In other words, step costs are fixed costs over a certain range of activity, but become variable costs once a certain threshold is crossed.

Which One of the Following Sentences About Step Costs Is