fixed overheads

fixed overheads

any indirect COSTS that do not vary with the level of output of a product. They include such items as rents and depreciation of fixed assets, whose total cost remains unchanged regardless of changes in the level of activity. Consequently, fixed overhead cost per unit of product will tend to fall as output increases (as OVERHEADS are spread over a larger output). See VARIABLE OVERHEADS, SEMI-VARIABLE OVERHEADS, STANDARD COST.
References in periodicals archive ?
Keeping fixed overheads to a minimum was very much on my mind when writing the business plan for Simply Bows and Chair Covers.
High fixed overheads should be avoided if possible at start-up.
When the economic downturn hit the UK in 2008, our fixed overheads were high and when sales dried up, we ended up over-geared.
Moss added to the disappointment by reporting significant rises in property and utility costs, causing fixed overheads to rise 6.
A Pergo press release notes, "The main focus of the program is to reduce corporate and fixed overheads, improve productivity and create global synergies in purchasing, information technology, as well as product design and development.
NDS clients reduce their fixed overheads significantly as they leverage the lower costs of offshoring in a unique per-transaction model.