Fixed Costs

  • (noun): A periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.).
    Synonyms: fixed charge, fixed cost

Some articles on costs, fixed costs, fixed cost, cost:

Shutdown (economics) - Explaining - The Shutdown Rule
... continue to operate if price exceeds average variable costs.” Restated the rule is to produce in the short run a firm must earn sufficient revenue to cover its variable costs ... By shutting down a firm avoids all variable costs ... However, the firm must still pay fixed costs ...
Average Fixed Cost
... Average fixed cost (AFC) is an economics term that refers to fixed costs of production (FC) divided by the quantity (Q) of output produced ... Average fixed cost is a per-unit-of-output measure of fixed costs ... As the total number of goods produced increases, the average fixed cost decreases because the same amount of fixed costs is being spread over a larger ...
Contribution Margin - Examples
... For Year Ended December 31, 201X Sales $ 462,452 Less Variable Costs Cost of Goods Sold Sales Commissions Delivery Charges $ 230,934 $ 58,852 $ 13,984 Total Variable Costs $ 303,770 Contribution Margin (34%) $ 158,68 ... This means that, for every dollar of sales, after the costs that were directly related to the sales were subtracted, 34 cents remained to contribute toward ... C Sales $120,400 $202,050 $140,002 Less Variable Costs Cost of Goods Sold $70,030 $100,900 $60,004 Sales Commissions $18,802 $40,050 $0 Delivery Charges $ 900 $ 8,084 $ 5,000 Total Variable Costs $ 89,732 ...
Shutdown (economics) - Example
... Assume that a firm has fixed costs of $20,000, variable costs of 45,000 and revenue of 35,000 ... The firm is operating at a loss since total costs exceed total revenue ... he is earning sufficient revenue to pay his fixed costs and a portion of his variable costs ...
Grenzplankostenrechnung - Concepts of GPK
... cost management systems because of the level of organizational planning and control and its emphasis on accurate operational modeling ... With GPK's marginal-based approach, internal service and saleable product/service costs should only reflect the direct and indirect costs that can be linked to individual ... Proportional costs in GPK consists of direct and indirect costs that will vary with the particular output ...

Famous quotes containing the words costs and/or fixed:

    Pride can go without domestics, without fine clothes, can live in a house with two rooms, can eat potato, purslain, beans, lyed corn, can work on the soil, can travel afoot, can talk with poor men, or sit silent well contented with fine saloons. But vanity costs money, labor, horses, men, women, health and peace, and is still nothing at last; a long way leading nowhere.—Only one drawback; proud people are intolerably selfish, and the vain are gentle and giving.
    Ralph Waldo Emerson (1803–1882)

    A fixed image of the future is in the worst sense ahistorical.
    Juliet Mitchell (b. 1940)