Semi-variable costs vary in direct proportion to the volume of activity or production.

Question

Quizplus · Accepted Answer

Semi-variable costs, also known as mixed costs, have both fixed and variable components. The fixed component remains constant regardless of the volume of activity or production, whereas the variable component varies in direct proportion to the volume of activity or production. Therefore, semi-variable costs do not vary in direct proportion to the volume of activity or production.

Semi-Variable Costs Vary in Direct Proportion to the Volume of Activity