Which of the following is an example of a step-fixed cost?
A)cost of disposable gowns used by patients in a hospital
B)cost of soaking solution to clean jewelry (Each jar can soak 50 rings before losing effectiveness.)
C)cost of tuition at $300 per credit hour up to 15 credit hours (Hours taken in excess of 15 hours are free.)
D)cost of disposable surgical scissors, which are purchased in increments of 100

Question

Quizplus · Accepted Answer

Step-fixed costs are fixed costs that remain constant within a certain range of output but increase by a lump sum once output reaches a certain level. In the case of disposable surgical scissors, the cost remains constant until a certain threshold is reached, at which point the cost increases by the lump sum of purchasing an additional increment of 100 scissors.

Which of the Following Is an Example of a Step-Fixed