Is labour always a fixed cost?

No. Salaried staff are usually fixed in the short run; piece-rate or hourly casual workers paid only when producing are variable. Read the case carefully.

What is semi-variable cost?

A cost with both fixed and variable elements (e.g. phone bill with line rental + call charges). Examiners may ask you to split or treat as one category if told.

9609 · 5.4.1

Cost information — FAQ

Frequently asked questions for 9609 Cost information. Direct answers first, then deeper explanation — then practise with marking.

Is labour always a fixed cost?: No. Salaried staff are usually fixed in the short run; piece-rate or hourly casual workers paid only when producing are variable. Read the case carefully.
What is semi-variable cost?: A cost with both fixed and variable elements (e.g. phone bill with line rental + call charges). Examiners may ask you to split or treat as one category if told.

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