These are costs which contain both a fixed-cost and a variable-cost element.
Semi variable costs may be made up of separate elements, for example phone charges which may include a fixed line rental charge and variable call usage charges. They may also be fixed for certain levels of activity but then become variable, for example labour costs may be fixed for normal production levels but incur overtime payments for higher production levels.
Semi variable cost is a term normally found in management accounting. Explore our learning zone to discover more