What comes under semi-variable cost?
Electricity is a good example of a semi-variable cost. The base rate for service may be constant, but as production grows, power consumption and the company's electricity bills go up. In other words, there is both a fixed and variable aspect to semi-variable costs.
What are semi-variable costs give an example?
Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the Cost of Goods Sold.
How many types of semi-variable cost are there?
Examples of semi-variable overheads include sales commissions, vehicle usage, and some utilities such as power and water costs that have a fixed charge plus an additional cost based on the usage.