However, there could be a breaking point where the test volume increase (to say 40%) would necessitate another supervisory position, which forces an increase in the
semivariable cost.
Fixed and
semivariable cost structures normally are less than optimal areas to begin with, since they often take longer to affect.
We also analyzed the effect of this modeling approach for
semivariable costs by including two Air Force cost metrics: Air Force total ownership cost (AFTOC) and logistics cost planning factors costs per flying hour (CPFH).
If trade takes place, shipping any of the commodities to another agent incurs
semivariable costs of transportation.
Due to the existence of fixed and
semivariable costs, actual costs do not change in direct proportion to a single cost "driver.
However by adopting a less restrictive approach than that proposed by Areeda and Turner they have to cope with some very difficult questions involving overhead allocations, and the distinction between variable and
semivariable costs.
This is because fixed and
semivariable costs are absorbed by a larger volume of dispensed prescriptions.
