Page 37 - BA2 Integrated Workbook STUDENT 2018
P. 37

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 $
                      ion


                                                                        Variable cost
                                                                          element





                                                                         Fixed cost
                                                                          element


                                                        Activity
                                                          level
                                                           ion



                  Illustrations and further practice


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