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

question 10

Multiple Choice

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

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Definitions:

Franchisor

A company that grants the license to an individual or company (franchisee) to operate a business under the franchisor's brand and business model.

Opportunity to Learn

The availability or provision of circumstances that allow individuals to acquire new skills or knowledge.

Royalty Fees

The ongoing payments that franchisees pay to franchisors—usually a percentage of gross sales.

Gross Sales

The total revenue generated from goods and services sold by a company before any deductions are made for returns or discounts.