Business A-Level
stepped fixed costs
What stepped fixed costs means in Business A-Level, as defined for AQA.
Definition of stepped fixed costs
Check what you remember
Read the wording for your board, then hide it and explain stepped fixed costs in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Fixed costs are drawn flat when in reality they step up as soon as another supervisor or another unit of warehouse space is needed.
Topics that use stepped fixed costs
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- contribution squeeze
- credit terms
- data reliability
- forecast risk
- gross profit margin
Using stepped fixed costs in the exam
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