Semi-Variable Cost

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Semi-Variable Cost

A cost for an individual or company that consists of a fixed base cost and another cost that changes from time period to time period. For example, suppose one's landlord rolls utility costs together with the rent. One's rent thus becomes a semi-variable cost because one pays the rent (a fixed cost) and the electric, gas, and water bills (variable costs) together with the same check.
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Operating costs boost the recurring monthly expenditure and are a semi-fixed cost because the amount will vary by month.
3% the previous year as cost management efforts and leverage from higher volume on fixed and semi-fixed cost were partially offset by costs related to the Company's pay-for-performance employee incentive plans.
Since airline operating budgets consist in large part of fixed and semi-fixed cost items such as rents, airport operation costs and overhead, achieving meaningful unit cost reduction will be difficult in the short term.
The increase in gross profit margin resulted primarily from the effects of product mix, of fixed and semi-fixed cost revenue levels in the current periods.
Increased focus on operational execution: Improved efficiencies, focus on existing base of restaurants and leverage on the fixed and semi-fixed cost structure.
2 percent in the first half of 1997, reflecting the semi-fixed cost nature of Biper's business.
A decrease in the operating expenses as a percentage of non-sales revenue reflects higher revenue for 2006 compared to semi-fixed costs such as rent, labour and vehicle operating costs.
3) Direct labor, as a percentage of net product sales, decreased largely due to the benefit of higher net pricing, lower average wage rates from labor optimization strategies and changes in pay practices of certain team members, and excellent labor controls, which more than offset sales deleveraging on fixed and semi-fixed costs.
Increased volume and pricing in both segments and the related positive impact of increased leverage of fixed and semi-fixed costs over a higher revenue base contributed favorably.
In a deflationary spiral, firms with high operating leverage would likely lack the tools to respond quickly to weakening volumes and pricing by ratcheting down fixed or semi-fixed costs.
This improvement was primarily due to the positive impact of increased leverage of the segment's fixed and semi-fixed costs over a higher revenue base, improved productivity and the favorable mix associated with a higher proportion of drilling pump shipments.