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]] | ||
* [[Variable cost]] | * [[Variable cost]] | ||
Revision as of 11:43, 20 August 2013
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.
