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![]() | The content of this article has been derived in whole or part from Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein
(2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc.
ISBN
0137058292.. Permission has been received from the copyright holder to release this material under both the
Creative Commons Attribution-ShareAlike 3.0 Unported license and the
GNU Free Documentation License. You may use either or both licenses. Evidence of this has been confirmed and stored by
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2012021110008071. Permission applies only to such content from this book as was present in the article at 1 May 2012. See item #59 in the OTRS records ![]() |
Redirected to this article from "Indirect costs" (which means: Indirect cost = Fixed cost), I read in the article: "Indirect costs may be fixed or variable." Or this statement is wrong, or there should be no redirection. -- Wissons 08:43, 17 February 2006 (UTC)
Many of the Wikipedia articles on economic costs need a lot of work. There seems to be a lot of confusion between pages that discuss indirect, fixed, and sunk costs. The sunk cost page also veers to far into psychological economics which I disagree with... but of course that's a comment for the "Sunk Cost" page. I do believe fixed cost needs its own page as it is distinct from indirect cost. Fixed cost is a specific kind of cost that can define an indirect cost.
All fixed costs become variable in costs in the long run. (This is the definition of the short run/long run.
---
Tagged for cleanup per above. RJFJR 02:36, 14 September 2007 (UTC)
By definition, to say "fixed costs become variable costs" is to say "costs that are NOT dependent on volume become costs that ARE dependent on volume." If that is possible over time, then the mechanism needs explaining somewhere. I suspect it comes down to symantics - not that this is trivial. Is there a case for a new page that addresses the areas of conflict in terminology? --
Trevithj (
talk) 20:35, 17 September 2008 (UTC)
In determining the optimal level of output in the short run fixed costs are treated as sunk costs - they are ignored. If a firm is maximizing profits and fixed costs double this event would have no effect on the firm’s operations (other than reducing profits). The change in fixed cost would have no effect on the firm’s MC curve. Nor would it affect the price of outputs. Therefore the firm would simply pay the increased fixed costs and otherwise continue to operate as before. Jgard5000 ( talk) 17:34, 3 November 2009 (UTC)jgard5000 Jgard5000 ( talk) 17:34, 3 November 2009 (UTC)
Fixed cost are the cost associated with the use of fixed inputs. Fixed inputs are those inputs that do not vary with output they are not functionally related to the level of production. -- Jgard5000 ( talk) 21:07, 8 July 2010 (UTC)jgard5000-- Jgard5000 ( talk) 21:07, 8 July 2010 (UTC) In the long run there are no fixed inputs thus no fixed costs. -- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC)jgard5000-- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC)-- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC) The point is that it is the input use that is fixed not necessarily the cost associated with the input.
![]() | This article is rated Start-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||
|
![]() | The content of this article has been derived in whole or part from Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein
(2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc.
ISBN
0137058292.. Permission has been received from the copyright holder to release this material under both the
Creative Commons Attribution-ShareAlike 3.0 Unported license and the
GNU Free Documentation License. You may use either or both licenses. Evidence of this has been confirmed and stored by
VRT volunteers, under ticket number
2012021110008071. Permission applies only to such content from this book as was present in the article at 1 May 2012. See item #59 in the OTRS records ![]() |
Redirected to this article from "Indirect costs" (which means: Indirect cost = Fixed cost), I read in the article: "Indirect costs may be fixed or variable." Or this statement is wrong, or there should be no redirection. -- Wissons 08:43, 17 February 2006 (UTC)
Many of the Wikipedia articles on economic costs need a lot of work. There seems to be a lot of confusion between pages that discuss indirect, fixed, and sunk costs. The sunk cost page also veers to far into psychological economics which I disagree with... but of course that's a comment for the "Sunk Cost" page. I do believe fixed cost needs its own page as it is distinct from indirect cost. Fixed cost is a specific kind of cost that can define an indirect cost.
All fixed costs become variable in costs in the long run. (This is the definition of the short run/long run.
---
Tagged for cleanup per above. RJFJR 02:36, 14 September 2007 (UTC)
By definition, to say "fixed costs become variable costs" is to say "costs that are NOT dependent on volume become costs that ARE dependent on volume." If that is possible over time, then the mechanism needs explaining somewhere. I suspect it comes down to symantics - not that this is trivial. Is there a case for a new page that addresses the areas of conflict in terminology? --
Trevithj (
talk) 20:35, 17 September 2008 (UTC)
In determining the optimal level of output in the short run fixed costs are treated as sunk costs - they are ignored. If a firm is maximizing profits and fixed costs double this event would have no effect on the firm’s operations (other than reducing profits). The change in fixed cost would have no effect on the firm’s MC curve. Nor would it affect the price of outputs. Therefore the firm would simply pay the increased fixed costs and otherwise continue to operate as before. Jgard5000 ( talk) 17:34, 3 November 2009 (UTC)jgard5000 Jgard5000 ( talk) 17:34, 3 November 2009 (UTC)
Fixed cost are the cost associated with the use of fixed inputs. Fixed inputs are those inputs that do not vary with output they are not functionally related to the level of production. -- Jgard5000 ( talk) 21:07, 8 July 2010 (UTC)jgard5000-- Jgard5000 ( talk) 21:07, 8 July 2010 (UTC) In the long run there are no fixed inputs thus no fixed costs. -- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC)jgard5000-- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC)-- Jgard5000 ( talk) 10:48, 3 August 2010 (UTC) The point is that it is the input use that is fixed not necessarily the cost associated with the input.