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Business expenses not dependant on output
production to increase. For any factory, the fixed cost should be all the money paid on capitals and land. Such fixed costs as buying machines and land cannot
Fixed_cost
Fixed costs of production divided by the quantity of output
In economics, average fixed cost (AFC) is the fixed costs of production (FC) divided by the quantity (Q) of output produced. Fixed costs are those costs
Average_fixed_cost
Total economic cost of production
of total cost or variable cost. Either of these derivatives work because the total cost includes variable cost and fixed cost, but fixed cost is a constant
Total_cost
Cost added by producing one additional unit of a product or service
marginal cost of producing an automobile will include the costs of labor and parts needed for the additional automobile but not the fixed cost of the factory
Marginal_cost
Graph used in economics
variable (adjustable) T = total (fixed plus variable) C = cost These can be combined in various ways to express different cost concepts (with SR and LR often
Cost_curve
semi-variable cost (also referred to as a mixed or semi-fixed cost) is an expense which contains both a fixed cost component and a variable cost component
Semi-variable_cost
Total cost divided by number of goods produced
(and hence the first derivative of variable cost). A typical average cost curve has a U-shape, because fixed costs are all incurred before any production
Average_cost
Money spent to produce or procure goods or services
motivation. Average cost Cost accounting Cost curve Cost object Direct cost Fixed cost Incremental cost Indirect cost Life-cycle cost Non-monetary economy
Cost
Sum of marginal costs over all units produced
Fixed costs and variable costs make up the two components of total cost. Direct costs are costs that can easily be associated with a particular cost object
Variable_cost
Combination of losses of goods
cost (TVC) is the same as variable costs. Fixed cost (TFC) are the costs of the fixed assets those that do not vary with production. Total fixed cost
Economic_cost
Mortgage loan repaid in equal installments
consistent, single payment and the ability to plan a budget based on this fixed cost. Other forms of mortgage loans include interest only mortgage, graduated
Fixed-rate_mortgage
Variable costs of production divided by total output
{\displaystyle AVC={\frac {VC}{Q}}} Average variable cost plus average fixed cost equals average total cost (ATC): A V C + A F C = A T C . {\displaystyle AVC+AFC=ATC
Average_variable_cost
Form of advertising that uses the Internet
the risk of failed advertising onto publishers. Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online, usually over a specified
Online_advertising
Unrecoverable cost that has been incurred
irretrievable payment for the installation should not be deemed a "fixed" cost, with its cost spread out over time. Sunk costs should be kept separate. The
Sunk_cost
Contract involving additional payment to allow for risk and incentive sharing
additional payment to allow for risk and incentive sharing. Cost-reimbursement contracts contrast with fixed-price contracts, in which the contractor is paid a
Cost-plus_contract
Procedures to optimize practices in cost efficient ways
while common distinctions include direct and indirect costs and fixed and variable costs. Cost accounting encompasses a range of methods designed for different
Cost_accounting
Behavior of individuals and firms
cost is equal to fixed cost plus total variable cost. The fixed cost is the cost incurred regardless of how much the firm produces. The variable cost
Microeconomics
Costs of owning and operating a car
motorist underestimates this fixed cost by a significant margin. The IRS considers that the average US automobile has a total cost of US$0.58/mile, around
Car_costs
Concept in economics
Two different types of cost are important in microeconomics: the marginal cost of serving one more customer and the fixed cost to enter the market. Most
Natural_monopoly
Equality of costs and revenues
{\text{TFC}}{P-V}}\end{aligned}}} where: TFC is Total Fixed Costs, P is Unit Sale Price, and V is Unit Variable Cost. The quantity, ( P − V ) {\displaystyle \left(P-V\right)}
Break-even_point
Part of an activity that causes the change in its cost
Activity-based costing Fixed cost Variable cost Value chain Porter, M., Competitive Advantage [page needed] Shank, J. and Govindarajan, V., Strategic Cost Management:
Cost_driver
Model of the constraints of project management
the scope of a project which is fixed and known for a fixed cost and time. In fact the scope can be a function of cost, time and performance, requiring
Project_management_triangle
Unit selling price minus its variable cost
contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. In cost-volume-profit analysis, a form
Contribution_margin
Use of borrowed funds in the purchase of an asset
proportionately larger as a result. Businesses leverage their operations by using fixed cost inputs when revenues are expected to be variable. An increase in revenue
Leverage_(finance)
in the Federal Acquisition Regulations. One applies to fixed-price contracts, another to cost reimbursement contracts, and the third to time and materials
Changes_clause
Ongoing cost for running a product, business, or system
produced, like raw materials and purchased components. Everything else is a fixed cost, including labour (unless there is a regular and significant chance that
Operating_expense
Assets and property that cannot easily be converted into cash
has reduced from the original cost to the salvage value. Straight-line method: annual depreciation expense = cost of fixed asset − residual value useful
Fixed_asset
Cost accounting model
Variable cost per unit Total fixed costs Manpower Cost Direct and indirect CVP assumes the following: Constant sales price; Constant variable cost per unit;
Cost–volume–profit_analysis
2025 film by Genndy Tartakovsky
Fixed is a 2025 American adult animated comedy film directed by Genndy Tartakovsky and written by Tartakovsky and Jon Vitti. Produced by Sony Pictures
Fixed_(film)
Production scheduling model
new order is delivered in full when inventory reaches zero. There is a fixed cost for each order placed, regardless of the quantity of items ordered; an
Economic_order_quantity
One-time cost to develop a new product
is a form of fixed cost in economics terms. Once a system is designed, any number of units can be manufactured without increasing NRE cost. NRE can be
Non-recurring_engineering
Facilities and systems serving society
can rest. Engineers generally limit the term "infrastructure" to describe fixed assets that are in the form of a large network; in other words, hard infrastructure
Infrastructure
acronym for "depreciation, interest, repairs, taxes, and insurance". Total fixed cost includes the DIRTI 5, which are unavoidable for any capital asset of significant
DIRTI_5
Halting output when costs are excessive
entirely offsets fixed costs. (The size of the fixed costs is irrelevant as it is a sunk cost. The same consideration is used whether fixed costs are one
Shutdown_(economics)
Topics referred to by the same term
fuel Fixed cost, costs of doing business that do not change, such as rent and administration Total cost, fixed plus variable cost Average cost, the total
Cost_(disambiguation)
Strategy of setting prices based on a fixed markup percentage
Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the
Cost-plus_pricing
Concepts in economics
This level of fixed capital is determined by the effective demand of a good. Changes in the economy, based on capital, variable and fixed cost can be studied
Long_run_and_short_run
System that regulates the formation of blocks on a blockchain
average of multiple samples will have a lower variance. There are also fixed-cost functions such as the time-lock puzzle. Moreover, the underlying functions
Proof_of_work
Economic theory
economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales
Barriers_to_entry
Photovoltaic pricing observation
application of the more general Wright's Law which states there will be a fixed cost reduction for each doubling of manufacturing volume. The method used by
Swanson's_law
Thermal power station where the heat source is a nuclear reactor
base load generation, because this maximizes the hours over which the fixed cost of construction can be amortized. Nuclear power plants have a carbon footprint
Nuclear_power_plant
Costs associated with 'fixed assets'
organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment or land. It is considered
Capital_expenditure
Investment strategy
potential for reducing the average cost of shares bought. As the number of shares that can be bought for a fixed amount of money varies inversely with
Dollar-cost_averaging
Company offering air-side aviation services at an airport
A fixed-base operator (FBO) is an organization granted the right by an airport to operate at the airport and provide aeronautical services such as fueling
Fixed-base_operator
Indian electricity sector regulator
tariff for a station was calculated to cover both the fixed cost as well as the variable (energy) cost at a certain (normative) generation level. Demerit:
Central Electricity Regulatory Commission
Central_Electricity_Regulatory_Commission
Stockbroking agent
generate additional trading volumes and revenues without the need to incur a fixed cost base or the need to build a customer base directly. From the point of
Remisier
Process to determine the highest profits for a firm
the short run span of time under consideration. Fixed cost and variable cost, combined, equal total cost. Revenue is the amount of money that a company
Profit_maximization
Measure of how revenue growth translates into growth in operating income
amount of debt, debt servicing is a fixed cost. This leads to two measures of operating leverage: One measure is fixed costs to total costs: FC TC = FC FC
Operating_leverage
Maintaining a device in working condition
Preventive maintenance contracts are generally a fixed cost, whereas improper maintenance introduces a variable cost: replacement of major equipment. Main objectives
Maintenance
Rewards for employees and specialty of human resources
guaranteed package or fixed cost to company are aggregates that include guaranteed pay and benefits. This represents the total fixed cost of the reward package
Compensation_and_benefits
Inventory theory process
times are fixed and known Replenishments are ordered one at a time Demand is modeled by a continuous probability distribution There is a fixed cost associated
(Q,r)_model
Method of apportioning costs
focuses on cost allocation in operational management. ABC helps to segregate Fixed cost Variable cost Overhead cost If achieved, the split of cost helps to
Activity-based_costing
Model in inventory management
total inventory costs by balancing the inventory holding cost and average fixed ordering cost. The EPQ model was developed and published by E. W. Taft
Economic_production_quantity
Topics referred to by the same term
an office building complex in Buckhead, Atlanta, Georgia, US Average fixed cost, economic term AAFC (disambiguation) This disambiguation page lists articles
AFC
Long-lived physical assets used repeatedly in production
accounting, fixed capital is any kind of real, physical asset that is used repeatedly in the production of a product. In economics, fixed capital is a
Fixed_capital
Contract whose price does not change based on incurred costs
Boeing KC-46 Pegasus contract was a fixed price contract. Due to its history of cost overruns, it is an example of how fixed price contracts place the risk
Fixed-price_contract
Bicycle that has a drivetrain with no freewheel mechanism
A fixed-gear bicycle or fixie is a bicycle that has a drivetrain with no freewheel mechanism, meaning the pedals always spin together with the rear wheel
Fixed-gear_bicycle
Computer format for representing real numbers
In computing, fixed-point is a method of representing fractional (non-integer) numbers by storing a fixed number of digits of their fractional part. Dollar
Fixed-point_arithmetic
a nearby tree, for a fixed cost; Each squeezer takes a single lemon and squeezes it into a glass of lemonade, for a fixed cost; Each drinker wants to
Supply-chain_auction
Wireless communication used to connect fixed locations
communications between the two sites or buildings. Fixed wireless data (FWD) links are often a cost-effective alternative to leasing fiber or installing
Fixed_wireless
Type of investment
Fixed income is a type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example
Fixed_income
levy of 0.0150 N$ per unit and NEF levy of 0.0102N$ per unit, with a fixed cost based on load added to the bill. Consumers who have prepaid metering units
Cost_of_living_in_Namibia
Cost to produce, store and sell one unit of a particular product
The unit cost is the price incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs and all
Unit_cost
ASR method as a way of reducing the number of shares outstanding for a fixed cost, transferring the risk to the investment bank (which is now short the
Accelerated_share_repurchase
schedule consists of both a fixed cost and a cost per unit. Using the same notation as above, T(q) = k + pq, where k is a constant cost. Linear Pricing Schedule
Pricing_schedule
Non-negotiable price for a product
of resources or time expended by the contractor, as opposed to cost-plus contracts. Fixed-price contracts are often used for military and government contractors
Fixed_price
American economist
For example, they might feature a fixed-cost to enter, and constant marginal costs thereafter, with the average cost per unit falling with every unit they
Marc_Melitz
Competitive game
is a fixed cost of serving C from L (e.g., depending on the distance between the power station and the consumer's house). This cost is denoted Cost[C,L]
Facility location (competitive game)
Facility_location_(competitive_game)
Pricing strategy
an electric utility includes a small share of the monthly fixed cost of the utility, fixed (say, monthly) charges for the service are either absent of
Volumetric_pricing
Industry preferring its former location
industry may still like to stay in its former position because of its fixed cost (land capital etc.). A firm may also decide to stay in its former location
Industrial_inertia
Class of organisations or businesses
or smartphone are more convenient for these people. B&M increases the fixed cost for any business, therefore the products sold in physical shops tend to
Brick_and_mortar
Economic model
more than zero of a good gains a fixed benefit or cost, and each purchase after that gains a per-unit benefit or cost. Denoting T is the total price paid
Affine_pricing
is a fixed cost of serving C from L (e.g., depending on the distance between the power station and the consumer's house). This cost is denoted Cost[C,L]
Facility location (cooperative game)
Facility_location_(cooperative_game)
Decrease in asset values, or the allocation of cost thereof
preserving the historical cost of assets on the balance sheet. If there have been no investments or dispositions in fixed assets for the year, then the
Depreciation
Problem of setting prices by a public monopoly
while earning enough revenue to cover its fixed costs. Under Ramsey pricing, the price markup over marginal cost is inversely related to the price elasticity
Ramsey_problem
Analysis of manufacturing processes
high-cost productions and the lower-right modules favoring efficiency with the ability to spread their large fixed costs over a wider base, reducing cost per
Hayes-Wheelwright_matrix
South Korean announcer and presenter
가성비 캠핑장→호텔 노하우" [‘Save Me Dorm’ Do Kyung-wan’s first MBC entertainment fixed.. Cost-effective camping site → Hotel know-how]. Newsen (in Korean). Retrieved
Park_Ji-yoon_(presenter)
Purchasing of newly produced fixed capital
Fixed investment in economics is the purchase of newly produced physical asset, or, fixed capital. It is measured as a flow variable – that is, as an
Fixed_investment
Financial action
business for replacement of fixed assets at the end of their useful lives. Provision for depreciation based on historical cost will show inflated profits
Revaluation_of_fixed_assets
Balance sheet or statement of estimated receipts and expenditures
to these (activity based costing may be employed). Support and management functions may be revisited, and the resultant "fixed" costs, such as rent and
Budget
materials, VC4 = cost of delivery. The fixed cost (FC) are also divided into three types: FC1 = depreciation of fixed assets, FC2 = interests paid, FC3 =
Cigar_Box_method
Company that assists business to accept payment methods
charged in one of two ways: as a percentage of each transaction, or as a fixed cost per transaction. US-based online payment service providers are supervised
Payment_service_provider
Airline with generally lower fares
A low-cost carrier (LCC) or low-cost airline, also called a budget or discount carrier or airline, is an airline that is operated with an emphasis on minimizing
Low-cost_carrier
added to cost of revenue (i.e. direct costs). Indirect costs (e.g. depreciation, salaries paid to management or other fixed costs) are excluded. Cost of revenue
Cost_of_revenue
Mathematical model to assist inventory levels
fixed cost. This cost always exists when the production of a series is started. [$/production] c v {\displaystyle c_{v}} – variable cost. This cost type
Newsvendor_model
an alignment. It can be constant, where a fixed cost is charged for the gap, or linear, where a fixed cost is charged for each symbol inserted or deleted
MAFFT
Optional damage insurance coverage
liability insurance option, and simply factor in the premium as part of fixed cost of rental. When a customer does not pay the car rental company to waive
Damage_waiver
Difference between the cost and the selling price of a good or service
both fixed and variable expenses to produce and distribute a product. Markup can be expressed as the fixed amount or as a percentage of the total cost or
Markup_(business)
Fixed, one-time expenses in economics
Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or
Capital_cost
2010 video game
ships and weapons/equipment, which are sold for a given time and at a fixed cost. Galaxy On Fire 2 was re-released for newer devices in HD, which features
Galaxy_on_Fire_2
Energy storage system using electrochemical secondary cells
Decarbonization Power Source Auction supports BESS deployment by guaranteeing fixed cost recovery over a 20-year period. However, constraints such as limited price
Battery_energy_storage_system
Topics referred to by the same term
headquarters of State Street Corporation in Boston, Massachusetts Semi fixed cost, an expense which is incurred only if the entity had some activity, but
SFC
Concept in economics
many problems for service organizations, such as idling the capacity, fixed cost and excess expenditure on marketing and promotions. Strategies used by
Demand
Model used by cost accountants to determine profit
production cost) includes the fixed and variable costs. The square brackets contain the cost of goods sold, wq not cost of good made wx where x = cost of good
Profit_model
Granot, Frieda (1992). "Computational Complexity of a Cost Allocation Approach to a Fixed Cost Spanning Forest Problem". Mathematics of Operations Research
Minimum-cost spanning tree game
Minimum-cost_spanning_tree_game
Entity which operates public service infrastructure
capital-intensive businesses with unusually large economies of scale and high fixed costs associated with building and operating the infrastructure, e.g. power
Public_utility
Telephone number with no cost to its caller
although some mobile providers may charge their own fee. A fixed-cost fee (usually the cost of a local call) is payable by the caller to "1300" and "13"
Toll-free_telephone_number
Principle to predict effects of a change in conditions on a chemical equilibrium
hypothesized to be lower in the short run than in the long run because of the fixed-cost constraint in the short run. Since the change of the value of an objective
Le_Chatelier's_principle
Commercial lease structure where rent is tied to tenant gross income
during peak months. For the tenant, rent scales with revenue, reducing fixed cost exposure during low-sales periods. Percentage leases are also used for
Percentage_rent
Failed fast-ferry class operated by BC Ferries
government hoped that private shipyards would be able to build the ships on a fixed-cost basis. This turned out not to be the case; the shipbuilding industry was
PacifiCat-class_ferry
travel, tourism, insurance
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travel, tourism, insurance