Page 35 - BA2 Integrated Workbook - Student 2017
P. 35

Cost identification and classification




               3.3    Semi-variable cost

                             The CIMA Terminology defines a semi-variable cost as a ‘cost
                             containing both fixed and variable components and thus partly affected
                             by a change in the level of activity’.


               Examples of semi-variable costs:

                    Electricity


                    Telephone

                    Photocopier


               Graph of semi-variable costs


                   Total
                   cost $




                                                                    Variable
                                                                      cost





                                                                    Fixed

                                                                     cost


                                                          Activity
                                                           level





               TYU 4















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