A Step Cost

question 76

Multiple Choice

A step cost:

• A)is a fixed cost over the relevant range and a variable cost everywhere else.
• B)contains both fixed and variable components.
• C)increases in direct proportion to changes in activity.
• D)is fixed over some range of activity.

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Definitions:

Net Earnings

The amount of money left after all deductions, including taxes and operating expenses, have been subtracted from total income.

Standard Mileage Rate

A set rate per mile that taxpayers can use to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Vehicle Expenses

Costs incurred from the use of a vehicle for business purposes, including gas, repairs, and insurance, which may be deductible.

Leaders

Individuals who guide, influence, or command a group, organization, or country.