Fixed costs

07.07.2013 12:48

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Fixed costs

1) The costs incurred in an operation which are fixed - as opposed to variable costs. For example, VED, insurance costs, etc, which are paid annually and are therefore incurred whether the vehicle works or stands idle - hence reference to them in transport circles as standing costs. See also TIDE.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.95 (288 p.)


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