Mailroom Clerks at Snail Mail Are Paid a Salary of $3200

Multiple Choice

Mailroom clerks at Snail Mail are paid a salary of $3200 per month. All clerks are full time. A new clerk is hired whenever the volume of mail increases by 30 000 pieces since the last clerk was hired. If volume of mail is the activity base, mail-handling costs are:

A) committed fixed costs.
B) indirect costs.
C) step-variable costs.
D) discretionary fixed costs.