Step-wise costs and
curvlinear costs differ in following ways.
definition :
- Step-wise cost is the
cost which stays constant over the change in volume of
production
- Curvlinear cost is the cost which
changes with the changes in volume of production
Graph :
- Graph of step-wise cost looks like
stair step
- Graph of curvlinear cost looks like
'S' shape
Example :
- Production supervisior's salary
which stays fixed even if changes in production volume, thus it is
a example of step-wise cost
- Total direct labour cost which
changes according to production volume and hourly rate, thus it is
a example of curvlinear cost.