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Semi-Variable Cost
(redirected from Semivariable Costs)

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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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If trade takes place, shipping any of the commodities to another agent incurs semivariable costs of transportation.
Continuing with the example above, as the volume for a test system increases by 10%, the semivariable costs would increase, but not by 10%.
This improvement was offset by lower average unit volumes, which decreased leverage of fixed and semivariable costs.
 
 
 
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