Which of the following expenses would likely be classified "semi-variable"?
A)Rent
B)Electric utilities
C)Wages
D)Sales commissions

Question

Quizplus · Accepted Answer

Semi-variable expenses are those which have both a fixed and a variable component. In the case of electric utilities, there is a fixed cost for access to the grid and a variable cost based on usage. Rent would typically be classified as fixed, wages would typically be classified as variable, and sales commissions would typically be classified as purely variable.

Which of the Following Expenses Would Likely Be Classified "Semi-Variable