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
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
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
Costs that do not change as production changes; costs that occur even without any production