Sales commission may be considered as a semivariable cost because it may be fixed for a certain volume of sales and then increase to higher levels for higher volumes.

Question

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Sales commission typically has a base rate or fixed amount for a certain volume of sales, but may increase or become a percentage of sales for higher volumes. This makes it a semi-variable cost, as it has both fixed and variable components.

Sales Commission May Be Considered as a Semivariable Cost Because