[dshoudel]

What is step-fixed costs

[bulksalty]

Costs that rise in levels. If your firm makes bricks where employees are paid by the brick and each can produce 1000 hr, but needs to hire an extra foreman for every 8 employees, the foreman would be a step fixed cost. As production goes from 8,000 to 9,000 bricks, two foreman will be needed. However further increases in production won't increase the foreman cost until production reaches 16,000 per day.

Obviously the kiln is a fixed cost. The brickmakers are a variable cost.