Q449
Within relevant range, cost function which cost does not change in narrow ranges of activity is called
A.
fixed cost function
B.
variable cost function
C.
step variable cost function
AnswerD.
step fixed cost function
Answer: Option C
Solution
Answer: Option C
Solution:
Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.