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A semi-fixed cost is fixed over a given, small range of activity, and above that level of activity, the cost
suddenly jumps. It stays fixed again for a while at the higher range of activity, and when the activity moves
out of that range, it jumps again. A semi-fixed cost moves upward in a step fashion, staying at a certain level
over a small range and then moving to the next level quickly. All fixed costs behave this way, and a wholly
fixed cost is also fixed only as long as activity remains within the relevant range. However, a semi-fixed cost
is fixed over a smaller range than the relevant range of a wholly fixed cost. An example of a semi-fixed cost is
the nursing staff in a hospital. If the hospital needs one nurse for every 25 patients, then each time the
patient load increases by 25 patients, one additional nurse will be hired and total nursing salaries will jump by
the additional nurse's salary. That is in contrast to administrative staff salaries at the same hospital, which
might remain fixed until the patient load increases by 250 patients, at which point an additional admitting
clerk would be needed. The administrative staff salaries are wholly fixed costs (over the relevant range),
whereas the nursing staff salaries are semi-fixed costs.
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What are the costs of business known as?
if you are talking about the costs associated with running a business, they are called "operating costs" there are also the costs that are required to get a business running, they are called "startup costs"
What is the distinction between product costs and period costs?
product costs are the costs that are assiciated with the whole project you are working on..from start to finnish. period costs are those costs that you need for a certain time fraime within the project itself.
Examples of non relevant cost?
Examples are Sunk Costs, Fixed costs and Allocated Costs.
What are the costs of using a Sperm bank?
It costs money
What are some of the costs associated with securing finance?
costs associated with securing finance
Definition of controllable costs?
Well....That would be the control of costs
What is the definition of variable costs?
Change depending on the level of output
Why should you use off-the-shelf software definition?
cheaper long term maintance costs and lower parts costs.
What is the definition of transport costs?
cost of moving goods from place to place.
What is the definition of direct cost?
These are those costs which are necessar for production of goods and without these costs it is not possible to manufacture units of producs to be sold.
Definition of private cost in economics?
These are costs that are incurred to an individual or firm when they are carrying out the activities of consumption or production. They are the costs that those individuals or firms have to pay themselves.
What is the definition economic gain?
The definition of economic gain is opportunity costs that are deducted from revenues earned. Economic gains are good as it means a country is growing financially and economically.
How does the definition of liability apply to insurance claims?
The definition of liability in insurance claims means that the insured is protected in case they are sued. This coverage includes legal costs and payouts.
What is the business definition for profit loss statement?
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
What is the definition of the economic perspective?
The making of purposeful decisions in the context of marginal costs and marginal benefits.
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
Definition of full costing method?
a.k.a. Absorption Costing, is a method that includes direct manufacturing costs as well as indirect manufacturing costs such as machine depreciation and factory. (GAAP Required)
