Question

Give examples of mixed costs (semi-variable or semi-fixed costs) for the TeleMobile or Pitman company? Be as specific as possible?

Answer 1

1st =telephone expenses for pitman company (minimum bill+ rate as pr consume data or calling)

2nd=electricity bill(minimum due amount+consumption )

3rd=Commissions are a semi-variable labor costs. They are usually percentages of sales that are paid to the employee who made the sale. In these cases, the salesperson earns a consistent base pay, which is a fixed cost. But their commission pay is variable since it’s dependent on the business’s sales, so when it’s combined with their base pay, you have a semi-variable cost.)

4th extra hours working (the semi-variable cost at different production levels provided by the production department of the company to calculate the variable cost and the fixed cost.)

5th extra overheads (expenses other than production may be semi variable)