Page 76 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 4

3.4 Semi-variable cost

A semi-variable cost is a ‘cost containing both fixed and variable
components and therefore partly affected by a change in the level of
activity’.

Examples of semi-variable costs:

 Electricity

 Telephone

 Photocopier

Test your understanding 10

The variable production cost per unit of product B is $2 and the fixed
production overhead for a period is $4,000.

Calculate the total cost of producing 3,000 units of B in a period

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