step cost

A cost that is fixed (or that is only slightly variable) over relatively small ranges of activity, but which increases at intervals by significant amounts. For example, a manufacturing process may require additional floor space at various levels of production volume, with rental costs increasing significantly as each of the critical production volumes is exceeded. When plotted graphically, this variation of rental cost with activity levels resembles a series of steps. See also *semi-variable cost.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • Cost-plus pricing — is a pricing method used by companies to maximize their profits. The firms accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost, and then charging a price which is determined …   Wikipedia

  • step — /step/ noun a movement forward ● Becoming assistant to the MD is a step up the promotion ladder. ♦ in step with moving at the same rate as ● The pound rose in step with the dollar. ♦ out of step with not moving at the same rate as ● The pound was …   Dictionary of banking and finance

  • step-up in basis — USA stepped up basis, Also known as step up in basis. basis that is higher than the transferor s basis. For example, a buyer often receives a stepped up basis in assets acquired in a transaction structured as an asset acquisition and a transferee …   Law dictionary

  • Step therapy — In managed medical care step therapy is an approach to prescription intended to control the costs and risks posed by prescription drugs. The practice begins medication for a medical condition with the most cost effective and safest drug therapy… …   Wikipedia

  • Step climb — A step climb in aviation is a series of altitude gains that improve fuel economy by moving into thinner air as an aircraft becomes lighter and becomes capable of faster, more economical flight. Description Since the early days of jet aircraft and …   Wikipedia

  • Step Premium — A type of option where the cost of purchasing the option is paid gradually as the strike approaches instead of when the trade is initiated. The options contract spells out how much premium must be paid and when. A step premium option is more… …   Investment dictionary

  • Cost Accounting — A type of accounting process that aims to capture a company s costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and… …   Investment dictionary

  • Step-Up In Basis — The readjustment of the value of an appreciated asset for tax purposes upon inheritance. With a step up in basis, the value of the asset is determined to be the higher market value of the asset at the time of inheritance, not the value at which… …   Investment dictionary

  • Cost report — A cost report is a filmmaking term for a weekly report, compiled by the Production Accountant, detailing the costs to date, costs this week and estimate of the costs to complete the film. There are many other types that are related to multiple… …   Wikipedia

  • step-function cost — An item of expenditure that when plotted on a graph against activity levels gives a stepped function; i.e. increments of cost are incurred as activity rises. See also: semi fixed cost, linear cost function …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.