semivariable cost

Dictionary of Accounting Terms for: semivariable cost
semivariable cost

one that varies with changes in volume but, unlike a variable cost, does not vary in direct proportion; also called mixed cost . In other words, this cost contains both a variable and fixed component. Examples are the rental of a delivery truck, where a fixed rental fee plus a variable charge based on mileage is made; and power costs, where the expense consists of a fixed amount plus a variable charge based on consumption. A further example is a total factory overhead, which is a mixture of fixed overhead and variable overhead.

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