Chapter 21, Problem 5DQ

To determine

Introduction:

Step wise cost a little different from variable cost in the way that it does not change with change in production volume or labor hours as in case of variable cost also known as step wise variable cost. It occurs when some new activity has been started.

Curvilinear cost also different from variable cost as it not increases with the same rate as our production increases. It incurs when our production starts but later at mid stage, it increases but not at the same rate.

To determine:

Difference between Step-wise cost and curvilinear cost.