A(n)____ cost increases or decreases in intervals as activity changes.
A)historical cost
B)fixed cost
C)step cost
D)budgeted cost

Question

Quizplus · Accepted Answer

Step costs increase or decrease in intervals as activity levels change, rather than changing at a constant rate like variable costs or staying the same like fixed costs. Historical costs refer to actual costs incurred in the past, while budgeted costs are estimates of future costs.

A(n)____ Cost Increases or Decreases in Intervals as Activity Changes