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What are Semi-Variable Costs?

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Semi-variable costs are business expenditures that change to a limited degree in relation to sales or production volumes. These are partially fixed and partially variable costs. For example, a retail location may need to pay labor costs even when sales are extremely low simply to keep the shop open. This portion of labor can be viewed as fixed. When sales pick up, the retailer may offer workers more hours and hire temporary staff, this portion of labor can be viewed as variable.
Overview: Semi-Variable Cost
Type
Business Cost
Definition
Costs that have both a fixed and variable component.
Related Concepts
Variable Costs
Fixed Costs
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