![]() Step cost is when a fixed cost increases because of an increase in production needs. Remember that each company is different and what contributes to the fixed cost can differ too. This isn't an exhaustive list of possible fixed costs. Fixed cost includes items like office space rent, business insurance, employees' annual salaries and benefits, equipment rental and property taxes. Fixed costs are independent of your unit production, meaning that no matter how many units you produce or how much demand you have, your fixed cost will stay. Fixed costs are the costs that remain the same over time.
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