1) In accounting, operating expenses that do not vary with volume of activity or output, at least in the short run 2) At BPA, operating expenses that stay basically constant, regardless of power output and even when no electric service is provided to customers Includes interest expense on the Federal investment in the Pacific Northwest power system, contractual obligations, net costs of the residential exchange, and depreciation expense for long-lived assets
Those costs that do not vary with changes in the number of units produced or sold p 594
costs which do not vary with output (Folland et al , 1997) (S4,II) chinese | russian
Expenses incurred in running the business that dont vary as output or sales vary Also known as Common Costs General and administrative expense, such as rent, is an example
Expenses that do not vary with the level of production, such as depreciation and personal property taxes For example, personal property taxes are the same on a tractor regardless of whether that tractor is used on one acre or 300 acres
An expenditure that does not vary with production volume, such as rent, property tax, administrative salaries, etc [APIC]
Costs that do not change as production changes; costs that occur even without any production
(Hackett, 1998, chapter 6) Those costs that do not vary with the amount a firm produces in the short run An example is the cost of leasing office space or renting equipment (or owning a boat and traps)
Costs that remain constant independent of income Example: Rent and utilities are fixed costs for business owners, while the cost of processing orders varies with the number of orders received To stay in business, the owner must be able to cover his or her fixed costs
A cost incurred in the general operations of the business that is not directly attributable to the costs of producing goods and services These "Fixed" or "Indirect" costs of doing business will be incurred whether or not any sales are made during the period, thus the designation "Fixed", as opposed to "Variable"
Costs that do not change in the short term as a function of changes in production volumes, distribution volumes, labor or machine hours fixed interval order- A purchase or production order that occurs at a regular time interval and covers the variable demand during that period
Fixed costs are operating expenses that are incurred to provide facilities and organization which are kept in readiness to do business without regard to actual volumes of production and sales Fixed costs remain relatively constant until changed by managerial decision Within general limits they do not vary with business volume Examples of fixed costs consist of rent, property taxes, and interest expense Contrast with Variable cost
Fixed costs are operating expenses that are incurred when providing necessities for doing business and have no relation to the volume of production and sales (as opposed to "variable costs") Examples are rent, property taxes, and interest expense
Running costs that take time to wind down: usually rent, overhead, some salaries Technically, fixed costs are those that the business would continue to pay even if it went bankrupt In practice, fixed costs are usually considered the running costs These are static expenses that do not fluctuate with output volume and become progressively smaller per unit of output as volume increases Fixed costs are an important assumption for developing a break-even analysis The standard break-even formula estimates a break-even point of sales based on per-unit price or revenue, per-unit variable costs, and fixed costs For more on this, see the discussion on break-even analysis in the free online book Hurdle: the Book on Business Planning
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