An Example of a Step-Fixed Cost Would Be

question 38

Multiple Choice

An example of a step-fixed cost would be:

• A)the cost of factory insurance because the insurance company increased the premium.
• B)the cost of supervision since a second supervisor was added to oversee the new second shift.
• C)depreciation of equipment because it is computed on the units of production method.
• D)utility costs because it costs more to heat the building in the winter.

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Definitions:

Brainstorming

A group creativity technique by which efforts are made to find a solution for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Topic Sentence

A topic sentence is the first sentence in a paragraph that introduces the main idea or point that will be discussed throughout the paragraph.

Thunderstorm

A storm characterized by the presence of lightning and thunder, often accompanied by heavy rain or hail.

Debris

Fragments or remnants of something destroyed or broken down, often referring to scattered pieces of waste or ruins.