Step Costs Definition, Importance, and Examples
A person aware of these costs would advise getting one machine and producing 1,000 pens rather than 1,050. One machine costs $15,000 in total, but 1,000 pens generate $20,000 in revenue (1,000 x $20). 1) Employer liability insurance costs may remain quite stable until a certain threshold is reached. For example, it may cost €10,000 to have cover for up to 100 staff, but €15,000 if the staff number exceeds 100. From previous posts, you know what a fixed cost is. There is another type of f […]