Guideline on the Attribution of Internal Services
These guidelines update the current guidance that supports the Policy on Management, Resources and Results Structures (MRRS). The objective is to establish consistency in recording and reporting of internal services.
Date modified: 2016-03-21
Long description for image: Figure 2. Step Costs
Figure 2 is a diagram of a line graph that illustrates the concept of step costs. The horizontal axis represents the volume of activity, and the vertical axis represents the cost in dollars. The scales are not labelled.
The line depicts a step cost. The first part of the line is horizontal to illustrate that the cost remains the same even though the volume of activity is increasing. At a given volume, the cost increases significantly. This is represented by a vertical line. The cost then levels out once the capacity of the organization can meet demand. The repetition of this pattern creates a series of steps, giving this cost behaviour its name.