Question

Acme Manufacturing recently added another shift, which required the company to hire another production supervisor. The supervisor's salary would be considered a____________.
a. step-wise cost
b. mixed cost
c. curvilinear cost

Answer 1

Answer:

a. Step-Wise Cost

Explanation:

Step-Wise Cost -

It refers to cost which remains the same for various products and alters as soon as the lump sum production is reduced or increased , is referred to as the step - wise cost .

Hence , these types of cost increases or decreases in a steady manner and is dependent on the production volume .

Hence , from the given scenario of the question ,

The correct answer is a. step - wise cost .