Quasi-Fixed Costs
Content
Definition
Quasi-Fixed Costs are costs that are not strictly fixed or variable but have elements of both, fluctuating with business activity levels to some extent.
Usage and Context
Quasi-fixed costs have elements of both fixed and variable costs, fluctuating with business activity levels to some extent.
Frequently asked questions
- What is an example of a quasi-fixed input? An example of a quasi-fixed cost is salaried employee wages, which don`t vary directly with production levels but can change over time.
- What are those costs that have both fixed and variable elements called? Costs that have both fixed and variable elements are called semi-variable or mixed costs.
- Which type of cost is made up of both fixed and variable costs? Semi-variable or mixed costs.
Benefits
Quasi-fixed costs have elements of both fixed and variable costs, fluctuating with business activity levels to some extent.
Conclusion
Quasi-Fixed Costs have elements of both fixed and variable costs, fluctuating with activity levels.
