A cost that changes with activity but not in a straight line, jumping at intervals, is a:
AMixed cost
BStepped cost
CPrime cost
DPeriod cost
Answer & Solution
Correct answer: B. Stepped cost
1. The graph rises in blocks.
2. It is not linear.
3. It is a stepped cost.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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