The total cost of salaries of production supervisors, where 2 supervisors are needed for each 8-hour shift, and the relevant range is 0 units to the number of units that can be produced at full capacity using 2 8-hour shifts is a:
A) Fixed cost
B) Variable cost
C) Mixed cost
D) Stepwise linear cost

Question

Quizplus · Accepted Answer

The cost of salaries for production supervisors in this scenario is a stepwise linear cost because it remains constant for a given level of production (within the capacity of the two 8-hour shifts) but will increase in a stepwise manner if additional shifts are added to increase production capacity.

The Total Cost of Salaries of Production Supervisors, Where 2