What is meant by semi fixed charges?

Q.  What is meant by semi fixed charges?
- Published on 21 Nov 15

a. It is the cost which is independent of maximum demands and units generated.
b. It is the cost which depends only on the units generated.
c. It is the cost which depends upon the maximum demand but it is independent of units generated.
d. None of these.

ANSWER: It is the cost which depends upon the maximum demand but it is independent of units generated.

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