Semi-fixed cost: Difference between revisions
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A semi-fixed cost is where the cost is fixed within limited ranges of activity, but which increases when the level of activity becomes greater than this limited range. | A semi-fixed cost is where the cost is fixed within limited ranges of activity, but which increases when the level of activity becomes greater than this limited range. | ||
An example of a semi-fixed cost is where extra supervision salaries have to be paid each time an extra shift is worked. | An example of a semi-fixed cost is where extra supervision salaries have to be paid each time an extra shift is worked. | ||
If the total semi-fixed cost were plotted on the y-axis of a graph, with the x-axis being the level of activity, the shape of the cost curve would be a series of steps going up. | If the total semi-fixed cost were plotted on the y-axis of a graph, with the x-axis being the level of activity, the shape of the cost curve would be a series of steps going up. | ||
== See also == | == See also == | ||
* [[Fixed cost]] | * [[Fixed cost]] | ||
* [[Semi-variable cost]] | |||
* [[Variable cost]] | * [[Variable cost]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
Latest revision as of 15:21, 3 April 2021
A semi-fixed cost is where the cost is fixed within limited ranges of activity, but which increases when the level of activity becomes greater than this limited range.
An example of a semi-fixed cost is where extra supervision salaries have to be paid each time an extra shift is worked.
If the total semi-fixed cost were plotted on the y-axis of a graph, with the x-axis being the level of activity, the shape of the cost curve would be a series of steps going up.
