Management Accounting 25

25. A company rents warehouses for storage. Each warehouse is capable of storing up to 400 units, and costs £500 per month. For 250 units, the cost would be £500. For 500 units, the cost would be £1,000.

This is an example of:

A. A Fixed Cost

B. A variable cost

C. A semi-variable cost

D. A stepped cost