Final answer:
A cost that contains both a fixed and variable component is known as a semivariable cost. It includes expenses like utilities or salaries where a fixed base rate is affected by usage or activities.
Step-by-step explanation:
A cost that has both a fixed and variable component is termed a semivariable cost. In the context of business expenses, fixed costs represent outlays like rent for a facility that do not fluctuate with the level of production. These are sunk costs and do not change in the short run even if production levels do. On the other hand, variable costs are expenses that change in direct proportion to the level of production or sales volume.
When a cost has elements of both fixed and variable costs, it is known as a semivariable cost (also sometimes referred to as mixed or semi-fixed costs). Such costs might include utilities or salaries where there is a base rate (fixed), but the total cost can vary with usage or overtime hours (variable).