MC 7 Which of the following is an example of a step-variable cost?
A. Rent
B. Utility bills
C. Administrative salaries
D. Equipment maintenance
Answer:D
MC 7 Which of the following is an example of a step-variable cost?
A. Rent B. Utility bills C. Administrative salaries D. Equipment maintenance
Explanation: A step-variable cost is an expense that increases in steps as activity levels increase, such as the cost of equipment maintenance, which increases when additional machines are added.