Salaries paid to shift supervisors are an example of a
A)step-variable cost.
B)mixed cost.
C)step-fixed cost.
D)variable cost.

Question

Quizplus · Accepted Answer

Shift supervisors' salaries are fixed costs that remain constant within a certain range of output or activity, but increase in a step-like manner when the activity level crosses a certain threshold (e.g. when more supervisors are needed to manage additional shifts). This makes them an example of step-fixed costs.

Salaries Paid to Shift Supervisors Are an Example of a