ECONOMICS

Detailed explanation-1: -Semi-variable costs have features of both fixed costs and variable costs. The fixed portion remains the same, regardless of the activity. But the variable costs rise or fall based on the activity level. Separating out the fixed costs from the variable ones can be used by company managers to plan and control costs.

Detailed explanation-2: -Fixed Costs – costs that do not change with output. Variable Costs – costs that vary in direct proportion to output. Semi-variable costs – costs that are a combination of the above, with both a fixed and variable element.

Detailed explanation-3: -A mixed cost is one that combines the fixed and variable costs of a business.

Detailed explanation-4: -A semi-fixed cost is a cost that contains both fixed and variable elements. As a result, the minimum cost level that will be experienced is greater than zero; once a certain activity level is surpassed, the cost will begin to increase beyond the base level, since the variable component of the cost has been triggered.