Page 57 - Microsoft Word - 00 ACCA F2 Prelims.docx

Cost classification

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

Total
cost $

Variable
cost

Fixed
cost

Activity
level

Illustrations and further practice

Now try TYU questions 5 and 6 from Chapter 4

51