The portion of the typical monthly payment that covers whatever percentage of the building purchase price was borrowed becomes a fixed cost
Considered a fixed cost
as an entitlement similar to CIVPAY.
We use the reported capacity utilization ratios and our estimates of total fixed costs
to separate total costs into the cost of resources used and the cost of idle capacity.
The more deeply one considers the notion of fixed costs
, the more difficult it becomes to define a fixed cost
When fixed costs
are recovered through variable charges, such as an energy charge per kWh, a cooperative's fixed cost
recovery is at the mercy of sales fluctuations due to weather, energy efficiency, conservation or self-generation.
Although not defined in the FAR, fixed costs
are defined in the following reference sources.
If 20% of total distribution revenue is earmarked to cover these fixed costs
, then the minimum scale required to break even is distribution revenue of $150 million (roughly $75 million of first-year commissions).
Increasing test volume reduces the fixed cost
Subject pairs are presented with payoff tables that have entries differing only by a fixed cost
Like other departments, the print shop's budget is comprised of what could be called fixed costs
Therefore, credit managers should be alert to the size of the fixed cost
component of a customer's cost structure.
And to complicate matters more, some costs are mixed costs consisting of a basic fixed cost
plus a variable rate.