User:Kashansajjad/Step fixed cost

== Step fixed cost ==

A type of cost which remains fixed up to a certain level and changes as the certain level changes and again remains fixed up to next level.

Example

For example, rental of a warehouse, which stores 1000 boxes, is a fixed cost. As number of inventory increases from 1000 to 1001, company would need to hire new warehouse. Suppose that new warehouse has capacity to store 1000 boxes. Now the rental cost of warehouse will change and will be fixed up to next certain level i.e. 2000 boxes. At this position, we can say that rental of warehouse is a step fixed cost.

--Kashansajjad (talk) 05:35, 12 August 2009 (UTC)Kashan