step variable cost definition and example
A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.Conversely, a truly variable cost will vary continually and directly in concert with the level of activity.n example of a step variable cost is the compensation of a quality assurance (QA) worker in the assembly area of a production department. Each QA worker is capable of reviewing a certain number of parts per day.