an example of step fixed costs would be: 1. the cost of factory insurance because the...

an example of step fixed costs would be: 1. the cost of factory insurance because the insurance company increased the premium 2. the cost of supervision since a second supervisor was added to oversee the new second shift. 3. depreciation of equipment because it is computed on the units of production. 4. utility costs because it costs more to heat the building in the winter.

Expert Solution

Second option is correct.

Explanation-A step cost is a cost that do not change with change in volumen but at discrete points. Adding a supervisor to a new shift due to increased production is an example of step cost.

ekkarill92 answered 2 years ago

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