Asked by Peter Carroll on Jun 26, 2024
Verified
Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost
Step-Variable Cost
Costs that remain fixed over a specific range of production or activity, but jump to a higher level once a certain threshold is exceeded.
Fixed Cost
Expenses that do not change with the level of output or sales, such as rent or salaries.
Mixed Cost
Expenses that contain both fixed and variable components and change in total with the level of activity but not proportionately.
- Assess and interpret variable, fixed, and blended financial charges.
Verified Answer
Learning Objectives
- Assess and interpret variable, fixed, and blended financial charges.
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