Step Costs

question 157

Multiple Choice

Step costs

• A)per unit are the same for each range of volume.
• B)are classified as step variable or step fixed depending on the range of activity for which the cost remains fixed.
• C)change in total at every level of activity.
• D)are considered to be step fixed costs within a relatively small range.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that an economy can produce when all resources are fully employed.

Education Level

A measurement of the highest stage or degree of formal learning or training that an individual has completed.

Labor Force

Refers to the total number of people, including both the employed and the unemployed, who are currently available to engage in the production of goods and services in an economy.

Entrepreneurs

Individuals who start, organize, manage, and assume the risk for a business venture.