An example of a step-fixed cost would be:
A. the cost of factory insurance because the insurance company increased the premium.
B. the cost of supervision since a second supervisor was added to oversee the new second shift.
C. depreciation of equipment because it is computed on the units of production method.
D. utility costs because it costs more to heat the building in the winter.

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Second option is correct ExplanationA step ... View the full answer