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 ?
A reduction in fixed overheads was a prerequisite for starting over.The new company, be you, said it would operate the online and retail units of the old Beate Uhse erotica chain and market the brands Beate Uhse in Germany, Adam & Eve in France and Pabo in the Netherlands.
Following the outsourcing of the logistics unit and a considerable reduction in fixed overheads, the new stakeholder plans to focus on online retail where newer companies had pushed out the former Beate Uhse chain.
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 6.6% on a like-for-like basis.
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." Many of the work reductions are subject to agreement and negotiations with unions.