Which Is NOT a Step Cost

question 49

Multiple Choice

Which is NOT a step cost?

• A)When oil and gas exploration activity reaches a certain level in a given area,a company leases an additional rig.The lease cost of the rigs is a step cost.
• B)When ten nurses are added to a shift,a nursing supervisor is also added to the shift.The salaries of the nursing supervisors are a step cost.
• C)When a telemarketing company adds ten workers to a shift,a supervisor is also added to the shift.The salaries of the supervisors are a step cost.
• D)When a manufacturing company ceases production,a skeleton crew of maintenance workers continues to work,but the rest are terminated.When production resumes,maintenance workers are rehired in direct proportion to the amount of production.The wages of the maintenance workers are a step cost.

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Definitions:

Cultural Levels

The different layers of culture that an individual belongs to, from personal beliefs to global cultures, each influencing one's identity and behavior.

Technical Culture

The customs, practices, and values that characterize a particular group or organization engaged in technical work.

Informal Culture

The unspoken, unofficial, and often unintended behaviors, traditions, and rituals that organically develop within an organization.

Cultural Levels

The various strata within cultures that influence social behavior and interactions, ranging from national norms to individual values and beliefs.