Which of the Following Is a True Statement Relating to Step

question 96

Multiple Choice

Which of the following is a true statement relating to step costs?

• A)Step costs remain constant over only a small range of activity.
• B)Step costs do not contain a fixed component.
• C)Step costs are also referred to as fixed costs.
• D)None of these ans choices is a true statement.

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Definitions:

Debit Memorandum

A debit memorandum is a document issued by a buyer to a seller, indicating a return of goods or a request for a price reduction, essentially serving as a formal request to reduce the amount owed.

Cash Receipts

The inflow of cash into a business, often tracked and recorded as part of the financial accounting process.

Adjusting Entries

Accounting records created at the close of an accounting period to assign revenues and expenses to the period they truly belong to.

Deposits In Transit

Funds that have been recorded in a company's books but not yet reflected in its bank balance due to processing time.