semivariable cost

semivariable cost definition - business

semivariable cost

An expense that has both a fixed component and a variable component such that the expense is directly related to sales, but not in the same proportion. For example, operation of a vehicle entails semivariable costs, with fuel as a variable expense and depreciation as a fixed expense. A firm's delivery van can be driven twice as much and help generate twice as much in sales revenue without operation of the vehicle costing the firm twice as much.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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