from Wiktionary, Creative Commons Attribution/Share-Alike License.
- adjective Comprising both a
fixed costand a variable cost.
from Wiktionary, Creative Commons Attribution/Share-Alike License
If the workforce cannot be immediately adjusted in size in response to a falloff or increase in demand, or if adjustments can only be made through attrition, direct labor costs may be “semivariable”—they vary, but not proportionately.
Time obviously plays an important role in classifying costs as variable, semivariable or fixed; a cost that may be fixed for one decision where the time horizon of adjustment is short may be semivariable or even completely variable for a decision where the adjustment time horizon is long.
Semivariable Costs Fixed Monthly Utility Charge Variable Cost per KW Activity (Kilowatt Hours) Total Utility Cost Total semivariable cost Y = a + bX X Y