Costs that remain fixed over wide ranges of activity but jump to a different amount outside that range are called:
A) step-fixed costs.
B) step-variable costs.
C) semivariable costs.
D) curvilinear costs.

Question

Quizplus · Accepted Answer

Step-fixed costs remain unchanged up to a certain level of activity or output, after which they increase in steps or jumps. They are fixed costs that become variable or semi-variable after a certain level of activity.

Costs That Remain Fixed Over Wide Ranges of Activity but Jump