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A semi-variable cost, also known as a semi-fixed cost, consists of both fixed and variable components. On a graph where the vertical axis represents cost incurred, the fixed portion remains constant regardless of activity level, while the variable component increases with higher levels of activity. This results in a cost structure that starts at a certain level (the fixed cost) and then slopes upward as variable costs accumulate with increased usage or production. Examples include utility bills, where there's a base charge plus costs that vary with consumption.

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3w ago

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