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Salaries paid to shift supervisors are an example of a a. step-variable cost. b. step-fixed cost....

Salaries paid to shift supervisors are an example of a a. step-variable cost. b. step-fixed cost. c. mixed cost. d. variable cost.

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Answer #1
The answer is Option b.
Salaries paid to shift supervisors are an example of a step-fixed cost.
A step fixed cost is a cost that does not change within certain high and low thresholds of activity,
but which will change when these thresholds are breached.
A threshold breach can result in one of two conditions in regard to a step fixed cost:1) Activity declines 2) Activity Increases
Example of Step fixed costs include : The cost of starting up a new production shift, which includes the salaries of shift supervisors.
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