Finance and accounting
Semi-variable cost
A cost with a fixed part and a part that moves with volume.
Last reviewedWhat does Semi-variable cost mean?
A semi-variable (or mixed) cost has a fixed base plus a variable part. A phone plan with a monthly fee plus a charge per minute is an example, as is a salesperson paid a base salary plus commission.
Related terms
- Fixed costA cost that stays the same when volume changes, within a normal range.
- Variable costA cost that rises and falls with how much you make.
- Step costA cost that is flat over a range, then jumps.
- ProfitThe money left over after costs. Revenue minus cost.
- RevenueMoney earned from sales, before costs.
- CostWhat it takes to make and sell the product in a period.
- Marginal costThe extra cost of making one more unit.
- MarginProfit on a sale, as an amount per unit or as a percent of price.