Each of Acorn Manufacturing's Production Managers Can Oversee 80,000 Machine

Multiple Choice

Each of Acorn Manufacturing's production managers can oversee 80,000 machine hours of manufacturing activity. The annual salary of a production manager is $55,000. If Acorn has 60,000 hours of manufacturing activity, one manager is needed; for 100,000 hours, two managers are needed; for 150,000 hours, three managers are needed; and so forth. Acorn's salary cost can best be described as a:

A) variable cost.
B) curvilinear cost.
C) step-variable cost.
D) fixed cost.
E) step-fixed cost.