The fixed costs
of OGK-2 and OGK-6 clearly show a potential for optimization.
The company announced the loss of 193 jobs at the plants as part of a cost cutting exercise aimed at reducing fixed costs
by CHF 40 million over the next 18 months.
Additionally, the allocation of facility-level fixed costs
to products is arbitrary at best, because the facility-level costs support the company, not the individual products.
One of the major challenges that cooperatives face is how to effectively manage and recover a cooperative's "fixed costs
." These are the costs that are present due to the fact that a customer is being served, and they do not increase or decrease based upon how much energy a customer uses or doesn't use.
30 November 2009 - Finnish flag carrier Finnair Oyj (HEL: FIA1S) said today it will sell parts of its ground handling subsidiary Northport and of Finnair Cargo Terminal Operations as of 1 December in a bid to cut its fixed costs
and focus on its core operations.
While the giant law firms have merged to gain more business, that expansion creates fixed costs
, but by joining the Alfa network, Wright Lindsey & Jennings has a presence worldwide without the fixed costs
Arguments for large operators focus on their size and the inherent benefits, such as the ability to scale fixed costs
in networks and IT, a stronger bargaining position with suppliers and internal sharing of best practices.
Since fiscal 1999, the Worcester schools have spent a decreasing percentage of their budget on direct instructional costs and an increasing percentage on fixed costs
such as health insurance and utilities.
The Markowitz algorithm, however, excludes the existence of fixed costs
, which may play an important role in the context of valuing customer segments and customer portfolios, as we will see.
A quick guide for analysis of loss-cost metrics recognizes that, on average, fixed costs
represent just 20% to 25% of total program costs.
For example, a company that manufactures its own products or provides services using its own staff will tend to have a higher proportion of fixed costs
. A firm that obtains its products for resale from another manufacturer or uses contractors to provide its services will tend to have a higher proportion of variable costs.
* Adjusting to demand fluctuations without significantly increasing fixed costs