Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
A cost that is nearly variable, but increases in small steps rather than continuously is a step variable cost.
What does step variable cost mean?
A step variable cost is one that, while typically fluctuating with activity level, tends to be incurred at certain discrete points and involves significant changes in amounts at those points. A really variable cost, on the other hand, will fluctuate over time and in direct proportion to the degree of activity.
This step effect can have an impact on the allocated cost per manufactured unit because a step variable cost can essentially stay the same even when activity levels alter. As more units are produced, the allotted amount per unit lowers until a new step variable cost is incurred due to the higher volume level, at which point the cost per unit increases as a result of the higher total variable cost.
To know more about variable costs refer to: https://brainly.com/question/14083670
#SPJ4
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
