Are Costs That Remain Constant Per Unit But Increase in Total Called Semi-Fixed Costs?
False. Costs that remain constant on a per unit basis but that increase in total as volume increases over a relevant range are referred to as 'variable costs'. Semi-fixed costs, also known as mixed costs, have a fixed component and a variable component. The fixed component remains constant regardless of the activity level, while the variable component changes proportionally with the activity level.
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