Which of the Following Best Describes a Step Variable-Cost Function

question 170

Multiple Choice

Which of the following best describes a step variable-cost function?

• A) a step cost function in which cost remains the same over narrow ranges of the level of activity in each relevant range
• B) a step cost function in which cost remains the same over narrow ranges of the level of activity outside the relevant range
• C) step cost function where the cost remains the same over wide ranges of the activity in each relevant range
• D) step cost function where the cost remains the same over wide ranges of the activity outside the relevant range