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What is semi variable expenditure and example?
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Answer Posted / vp
Semi-variable:- Costs that have both a variable and fixed
component.
Eg -Commercial leases. They often have a fixed rent per month
plus an additional rent based on the amount of production or
sales.
For example, rent is Rs 6,000 plus Rs0.50 for each product
that is made.
The base rent of Rs 6,000 is a fixed cost and the Rs 0.50 per
product is a variable cost.
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