Semi-Variable Cost
(see Semi-Fixed Costs - 2.2).
Formula
Semi-Variable Cost = Fixed Element + (Variable Rate × Output)
Real World
A mobile phone contract has a fixed monthly fee plus a charge per extra minute used — BT Business customers experience this structure across many of their service plans.
Exam Focus
Identify both components in a semi-variable cost; exam questions often test whether you can split them correctly.
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