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Explain Semi-variable Cost

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Rakesh Sahu asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

-A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable after the level is exceeded. Also known as a "semi-fixed cost." -Semi-variable costs are costs that include both a fixed and a variable component. Semi-variable costs are also called mixed costs -These expenses can be segregated into fixed and variable. Example: Depreciation of plant and machinery depends partly on efflux of time and partly on wear and tear. The former is fixed and the latter is variab

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Data?1494421730 rohit awasthi answered almost 3 years ago

Dear Friend > Semi-variable Cost Some expenses exhibit characteristics of Fixed and Variable Costs, Such costs are semi variable costs. Increase or decrease in expenses is not in proportion to output. Example: Delivery van expenses, Telephone, Electricity etc. These expenses can be segregated into fixed and variable. Example: Depreciation of plant and machinery depends partly on efflux of time and partly on wear and tear. The former is fixed and the latter is variable. Thanks

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