Stott Company requires one full-time dock hand for every 500 packages loaded daily. The wages for these dock hands would be:
A)variable.
B)mixed.
C)step-variable.
D)curvilinear.

Question

Quizplus · Accepted Answer

Step-variable costs change in steps or blocks rather than continuously. In this case, the number of dock hands required depends on the number of packages loaded daily, and the cost of hiring each dock hand would be constant within each block. Therefore, Stott Company's wages for dock hands are step-variable costs.

Stott Company Requires One Full-Time Dock Hand for Every 500