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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.
A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages. While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from those with high variable costs. This difference affects the financial structure of the organization as well as its pricing and profits.