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step fixed costs definition, step fixed costs meaning | English dictionary. Search also in: Web News Encyclopedia Images. step. n. 1 the act of motion brought about by raising the foot and setting it down again in coordination with the transference of the weight of the body. 2 the distance or space covered by such a motion.
From previous posts, you know what a fixed cost is. There is another type of fixed cost called a step (or stepped) fixed cost. A step fixed cost takes its name from the fact that the cost can take a âstep upâ if certain things happen. This usually means a cost increases when the activity of a business exceeds a certain level, and the fixed cost then suddenly increases, but remains fixed at this new higher level.