Semi-Variable Cost


Also found in: Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
On the production time basis, the direct material costs would be fixed as the order size is fixed, whereas on the production quantity basis the material costs would still be a variable cost and maintenance costs would tend to be a semi-variable cost on the time based system.
For example, the advocates of variable costing and contribution reporting believe that keeping distinctions among variable, fixed, and semi-variable costs helps the focus on causal relationships.