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Topic: Fixed cost

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Cost

Variable cost

Profit maximization

Throughput accounting

Sunk cost

Profit

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Revenue

Margin

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Income

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	Economics Interactive Tutorial: Cost Concepts
		Fixed Cost is the part of the budget that stays the same regardless of whether you produce a lot, a little bit, or even if you produce zero.
		Fixed cost is not cumulative because it's -- well -- fixed at $1000, regardless of the output rate.
		Marginal cost on this graph is the difference in cost between the given output rate and the next lower one.
	hspm.sph.sc.edu /COURSES/ECON/Cost/Cost.html (1331 words)

	Some Additional Cost Concepts
		Fixed costs are costs which do not change as the output of the firm changes.
		In our earlier discussion, the cost of using the asset to produce widgets was a fixed cost, because it would not change if we changed the number of widgets we produced.
		You should confirm for yourself that the marginal cost over the output range from 12 to 18 is $14; over the range from 18 to 23, it is $16; over the output range from 23 to 27, it is $19; and over the range from 27 to 30, it is $24.
	bands.butler.edu /~rmain/mba425/additionalcost.html (907 words)

	Fixed cost - Wikipedia, the free encyclopedia
		Fixed costs are un-expired assets or expenses whose total does not change in proportion to the activity of a business, within the relevant time period or scale of production.
		Similarly, not all indirect costs are fixed costs; for example, advertising expenses are indirect costs that are variable over a slightly longer time frame, as they may not be subject to change in the short term, but may be easily adjustable over a longer time frame.
		In accounting terminology, fixed costs will broadly include all costs (expenses) which are not included in cost of goods sold, and variable costs are those captured in costs of good sold.
	en.wikipedia.org /wiki/Fixed_cost (645 words)

	FS-546 - Cost and Revenue Considerations in Farm Management Decision-Making (Site not responding. Last check: 2007-10-14)
		The opportunity cost of labor is the income foregone by not working off of the farm or by not using farm labor in some alternative enterprise on the farm.
		Variable costs are primarily a function of output level produced and are the costs used in determining the optimum level of input use.
		The seven cost concepts in farm management decisionmaking are total fixed cost, total variable cost, total cost, average fixed cost, average variable cost, average total cost and marginal cost (Table 1).
	www.agnr.umd.edu /MCE/Publications/Publication.cfm?ID=189 (1959 words)

	Cost Analysis and Pricing in Distance Education
		Fixed costs, in contrast, are affected by long-range, management-control planning decisions and by strategic planning decisions.
		The shutdown fixed cost level is relevant for planning decisions involving plant shutdowns, and the operating fixed costs are relevant for planning and control decisions related to utilising the plant efficiently.
		That is, the unit cost is assumed to be constant throughout the range of activity under consideration, and the fixed costs are assumed to be constant for the time period covered by the analysis.
	www1.worldbank.org /disted/Management/Benefits/fore-04.html (3351 words)

	Controlling Costs: Economics Lesson
		The fact that entrepreneurs cannot change their fixed costs at the present does not mean they should ignore them.
		Fixed costs are generally paid out of the money earned from an entrepreneur's sales.
		His fixed costs would still be $500, but now it would be only 5 percent of revenue ($500 fixed costs divided by $10,000 sales = 5 percent).
	ecedweb.unomaha.edu /lessons/euse1.htm (1243 words)

	Costs: a key concept in Economics
		For instance, the cost of renting an office is a fixed cost, since usually the contract fixes it for a certain period of time (say one year), without any reference to the income produced by the operations that take place in the same office.
		For instance, the labour costs can be fixed costs, quasi-fixed costs or variable costs depending on the legal contracts of employment and the rules governing wages.
		In the case of an exporter, an example of sunk costs could be the costs of analysing the market and of exploring opportunities and seeking commercial partners.
	www.economicswebinstitute.org /glossary/costs.htm (1922 words)

	Econ 310 (Site not responding. Last check: 2007-10-14)
		The fixed input is commonly considered to be some aspect of capital, such the production facility, but may also be a normally variable input that is fixed because of production technology requirements, or a contractual commitment (e.g., a facility lease) related to production.
		A pizza shop whose primary fixed input in the short run is their lease on their facility has a short-run planning horizon equal to the period of time remaining in their lease, which may be 6 months or 2 years.
		Fixed costs are the costs associated with the fixed inputs that define the economic short run.
	www.humboldt.edu /~microeco/cost.htm (2427 words)

	Total Cost Lessons
		These are costs that are not as evident, for example if a student gives up a salary of $10,000 per year to start a business the student has to consider the salary as an implicit cost.
		Graphically the fixed cost is a horizontal line, while the variable cost changes slope according to the rate of increase in the cost function.
		The combination of fixed cost and variable cost result in the the total cost, graphically it is represented by a curve similar to the variable cost with the fixed cost added to it.
	daphne.palomar.edu /jose/sabbatical/lessons.htm (1514 words)

	Resources for Cost Behavior and Cost-Volume-Profit Analysis (Site not responding. Last check: 2007-10-14)
		Discretionary (managed) fixed costs—those fixed costs that are aligned with a specific purpose of management and which can be avoided in the short-run without severe negative effects on the firm.
		Fixed cost cannot be negative, thus the “a” term generated by the method cannot be used as an estimate of fixed cost.
		Fixed cost is lower and the unit contribution margin also is lower than under the proposed change.
	www.swcollege.com /accounting/students/cvp_reso.htm (6448 words)

	Defense Procurement and Acquisition Policy - Contract Pricing Reference Guide
		Fixed cost per unit decreases as the cost is spread over an increasing number of units.
		If you know that fixed costs are $500, variable cost per unit is $10, and the volume produced is 1,000 units, you can calculate the total cost of production.
		The cost of making zero units, $50,000, is the fixed cost for this set of data.
	www.acq.osd.mil /dpap/contractpricing/vol2chap2.htm (2494 words)

	Economic Terms, Glossary Of Economic Terms
		The value of the dollar was fixed in terms of gold, and every other country held its currency at a fixed exchange rate against the dollar; when trade deficits occurred, the central bank of the deficit country financed the deficit with its reserves of international currencies.
		Cost-benefit analysis compares the costs and benefits of the situation with and without the project; the costs and benefits are considered over the life of the project.
		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.
	economywatch.com /indianeconomy/glossary-of-economic-terms.html (6056 words)

	The Fixed Cost Problem (Site not responding. Last check: 2007-10-14)
		The total cost is the sum of a fixed cost, the cost of production of the information product, and a variable cost, the cost of producing the medium and coding of the information product in the medium.
		Then the fixed cost is the cost of creating the multimedia compilation and the variable cost is the cost of producing (and distributing) the CD ROM disks with the code for the compilation.
		The fixed cost per unit of output declines toward zero as the output increases and thus TC declines toward MC.
	william-king.www.drexel.edu /top/prin/txt/infoch/lims4.html (664 words)

	Overheads Chpt.7
		Costs may be more meaningful if they are expressed on a per-unit basis, as averages per unit of output.
		That's why the variable cost is high at both ends of the scale, and lowest in the middle -- in the range of outputs for which the plant and equipment was designed.
		While total and average cost concepts have their uses, the most important in the short run is marginal cost.
	william-king.www.drexel.edu /top/prin/txt/Cost/cost.html (2640 words)

	Fixed and Variable Costs (Site not responding. Last check: 2007-10-14)
		Variable costs are costs that can be varied flexibly as conditions change.
		In the John Bates Clark model of the firm that we are studying, labor costs are the variable costs.
		Fixed costs are the costs of the investment goods used by the firm, on the idea that these reflect a long-term commitment that can be recovered only by wearing them out in the production of goods and services for sale.
	william-king.www.drexel.edu /top/prin/txt/Cost/cost2.html (255 words)

	Key Terms
		A common cost is a cost that is common to a number of costing objects but cannot be traced to them individually.
		For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the aircraft.
		A cost that cannot be easily and conveniently traced to the particular cost object under consideration.
	www.mhhe.com /business/accounting/garrison/Student/olc/garrison9emgracct_s/ch02s_kt.html (538 words)

	Total Cost Lessons
		Explicit costs are visible costs that are commonly used in our daily lives such as rent, salaries, etc. There is an actual payment that takes place, these are the costs that accountants use in their books.
		The Average Fixed Cost is the first cost per unit curve that we shall analyze.
		Since we start with a the toal fixed cost and spread this number amongst an increasing number of units, the AFC becomes smaller and smaller.
	daphne.palomar.edu /jose/Tutorial/fiscal_policy/lessons.htm (1088 words)

	Understanding Cost and Output
		A unit cost is simply the "average total cost" of producing one unit of output.
		In this view of cost, total cost is the sum of all fixed costs and all variable costs.
		Fixed costs are those costs that, over some specific time period, do not vary with quantity of output.
	www.nps.navy.mil /drmi/uccostout.htm (1831 words)

	Fixed Cost as supplied by EagleTraders.com
		Fixed costs are incurred in the short run (the long run being defined as a period of time long enough for all costs to be variable).
		Fixed costs are those costs that are invariant to changes in the level of output.
		Total fixed cost (TFC) represents all payments to factors of production that are invariant to changes in output.
	www.eagletraders.com /advice/securities/fixed_cost.htm (192 words)

	PC.Solutions.Net - Fixed Cost Outsourcing .: Business Process Automation, IT ...
		PCSN is one of the first companies to introduce fixed cost IT Outsourcing to the Houston market for small / medium size business.
		We know how fixed cost outsourcing can save companies enormous amount of money and aggravation by moving the cost structure of information technology from your business to us.
		Fixed cost outsourcing includes proactive server and network maintenance, monitoring, helpdesk services, guaranteed response times, disaster recovery and much more!
	www.pcsn.net /fixedcost.asp (113 words)

	fixed cost Definition
		A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.
		Topics include determining your income, determining your expenses (whether they are fixed committed expenses, variable committed expenses, or discretionary expenses), and comparing the two.
		This article tells you why you should save and how much you should save, with specific emphasis on creating an emergency fund, and when to invest in high-risk, high-return ventures.
	www.investorwords.com /1992/fixed_cost.html (131 words)

	Fixed & Variable Cost Analysis (Site not responding. Last check: 2007-10-14)
		The "fixed" and "variable" costs calculated are not the actual fixed and variable costs of the supplier.
		The more inconsistent the relationship between quantity and prices (wide differences in both fixed and variable costs) the more irrational the price formula is in our opinion pricing.
		To select fixed and variable costs for further analyses we suggest you use those that are the most accurate predictor of quoted prices in between two selected points or use the costs that best fits your experience based on industry knowledge.
	www.sdsnotebooks.com /fixvar.htm (305 words)

	Services - Fixed Cost Model (Site not responding. Last check: 2007-10-14)
		IncSys is well versed in the process of assessing complexity, sizing and estimation of costs.
		Start-up companies are often faced with limited budgets and any cost or time overruns can have a significant impact in the overall financial well being of an organization attempting to establish itself in the marketplace.
		We analyze your requirements or your existing system and go through a detailed estimation and costing process, we identify tools and technology and development platform.
	www.incsysinc.com /fixed_desc.html (615 words)

	Ouachita Baptist University (Site not responding. Last check: 2007-10-14)
		In conjunction with Ouachita being recognized as a highly regarded academic institution, US News has also included Ouachita in its listing of top 10 “Best Value” institutions for several years in a row.
		A quick scan of the private higher education landscape in the mid-south shows Ouachita’s costs are in line and in many cases less than those of other similar private colleges and universities.
		Families can divide the annual cost for college into 12 equal payments due June through May. There is a $35 per semester handling fee for the monthly payment plan.
	www.obu.edu /costs (278 words)

	fixed cost (Site not responding. Last check: 2007-10-14)
		A fixed cost is a production- or transmission-related expense which must be paid regardless of whether the energy is produced or sold.
		Fixed costs can include capital costs, labor and maintenance charges, taxes and demand charges among others.
		operating expenses, embedded costs, marginal cost, sunk cost, capital cost, demand charge
	www.energyvortex.com /energydictionary/fixed_cost.html (59 words)

	Fixed cost, imperfect competition and bias in technology measurement: Japan and the United States (Site not responding. Last check: 2007-10-14)
		Fixed cost, imperfect competition and bias in technology measurement: Japan and the United States
		In many industries, competition is far from perfect and managerial efficiency (or a fixed cost) varies among firms.
		This paper incorporates these two factors in the technological-progress measurement and investigates the biases caused by their omission.
	www.oecd.org /LongAbstract/0,2546,en_2649_34325_1885777_1_1_1_1,00.html (278 words)

	Fixed Cost Television
		Fixed Cost Television is a new way for your ministry or organization to increase its awareness and effectiveness, while not overextending your media budget.
		If you are a pastor, evangelist or author and want to know more about how to use this powerful tool for your ministry, please fill out the form below.
		After filling out the form, the next page will display details on Fixed Cost Television and you will receive an email copy for your records.
	www.8x.com /company/fixed_cost_tv (147 words)

	Xerox primes channel with fixed-cost contracts for new models - Computer Business Review
		General manager for Xerox UK, Darren Cassidy said the move had proved to be an enabler for growth, and helped lower overall inventory and improve product lead times to between 24 and 48 hours.
		Unlike its competitors, where the unit print charge normally rises as the average print coverage on a page increases, with PagePack it is Xerox and not the reseller that takes the risk on high print coverage as the service is costed out at a flat-page rate for each printer covered by the scheme.
		The new contract scheme will only apply to newly installed machines, and service providers will not be able to retrofit the contract across an existing Xerox printer estate.
	www.cbronline.com /article_news.asp?guid=7A14FD2D-C58B-4114-BC12-EDBB1ED7CE29 (750 words)

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