Accounting Dictionary - Letter S

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Step-variable costs
are costs that remain fixed over a range of activity, and then change after this range is overcome. Step-variable costs change in increments. For example, depreciation on delivery trucks is a fixed cost within a certain volume of deliveries. When the volume of deliveries exceeds the usual level of deliveries more trucks are purchased and depreciation increases. Once depreciation expense has increased it remains fixed until the volume of deliveries changes again and more trucks are purchased.
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