Dizzy gives out a free T-shirt to every 100th customer entering the park.The cost of this T-shirt would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

Question

Quizplus · Accepted Answer

The cost of giving out a free T-shirt is dependent on the number of customers entering the park, but it only occurs in steps of 100 customers. This means that the cost is a step-variable cost.

Dizzy Gives Out a Free T-Shirt to Every 100th Customer