What type of cost does hospital staffing for a regular acute unit exemplify?

In hospital staffing for a regular acute unit, the correct classification is semi-fixed or stepped variable cost. This type of cost is applicable because staffing levels may change based on patient census or volume, but they do not adjust continuously with each additional patient. Instead, the staffing requirements often follow a pattern where they remain fixed at certain levels until a threshold of patient volume is reached, at which point additional staff may be added.

This structure allows hospitals to maintain a consistent level of care while managing labor costs effectively. For instance, if the patient count increases significantly, the hospital may have to hire additional staff—this represents a step in cost but does not happen at every increment of patient admission. Thus, these costs can be seen as “stepped” rather than purely variable, which reflects the fixed nature until a capacity threshold is reached.

In contrast, variable costs would fluctuate directly with the level of patient care without the limits set by staffing levels, while fixed costs would remain constant regardless of the changes in patient volume. A fixed cost pattern would suggest an unchanging cost that does not respond to fluctuations in demand, which does not accurately describe the dynamics of staffing in an acute care setting. Hence, the classification of semi-fixed or stepped variable cost aligns best with the