A-LevelAccountingCosting for materials and labour9706/12 · May/June 2019 · Q241 Mark
Which statement best describes a stepped fixed cost?
AIt changes in direct proportion to changes in output.
BIt changes in proportion to changes in prime cost.
CIt remains at a constant amount until output changes significantly.
DIt represents a constant amount of total cost.
✓ Correct answer
C: It remains at a constant amount until output changes significantly.
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