Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A trader hires a vehicle for $10\,000$, which permits him to travel up to $20\,000$ miles in each financial year. If this limit is passed, a further charge of $5000$ is applied. What type of cost does this represent?

  • Afixed
  • Bsemi-variable
  • Cstepped
  • Dvariable

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