fixative

Examples of fixative in the following topics:

• Fixed Costs

  • Fixed costs are not permanently fixed - they will change over time - but are fixed in relation to the quantity of production for the relevant period.
  • By definition, there are no fixed costs in the long run.
  • Discretionary fixed costs usually arise from annual decisions by management to spend on certain fixed cost items.
  • Average fixed cost (AFC) is an economics term that refers to fixed costs of production (FC) divided by the quantity (Q) of output produced .
  • Average fixed cost is a per-unit-of-output measure of fixed costs.

• Fixed Assets Turnover Ratio

  • Fixed-asset turnover is the ratio of sales to value of fixed assets, indicating how well the business uses fixed assets to generate sales.
  • In most cases, only tangible assets are referred to as fixed.
  • Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet).
  • Fixed asset turnover = Net sales / Average net fixed assets
  • Fixed-asset turnover indicates how well the business is using its fixed assets to generate sales.

• Price Fixing

  • There are many things sellers may do during a price fix.
  • These are all instances of price fixing.
  • Because of this, price fixing is illegal in most developed countries.
  • In the US, price fixing can be prosecuted as a criminal federal offense.
  • In August 2007 British Airways was fined £121.5 million for price fixing.

• Fixed Exchange Rates

  • A fixed exchange rate is a type of exchange rate regime where a currency's value is fixed to a measure of value, such as gold or another currency.
  • A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold.
  • A fixed exchange rate regime should be viewed as a tool in capital control.
  • China is well-known for its fixed exchange rate.
  • Explain the mechanisms by which a country maintains a fixed exchange rate

• Types of Costs

  • It consists of variable costs and fixed costs.
  • Fixed costs (FC) are incurred independent of the quality of goods or services produced.
  • However, fixed costs are not permanent.
  • They are only fixed in relation to the quantity of production for a certain time period.
  • This graphs shows the relationship between fixed cost and variable cost.

• Costs and Production in the Short-Run

  • Fixed Cost (FC) is the quantity of the fixed input times the price of the fixed input.
  • FC is total fixed cost and may be referred to as TFC.
  • Average Fixed Cost (AFC) is the FC divided by the output or TP, Q, (remember Q=TP).
  • AFC is fixed cost per Q.
  • Remember that fixed cost do not change and therefore do not influence MC.

• Defining Operating Leverage

  • Specifically, it is the use of fixed costs over variable costs in production.
  • For example, replacing production workers (variable cost) with robots (fixed cost) .
  • Manufacturing companies tend to invest heavily in fixed assets.
  • These include the ratio of fixed costs to total costs, the ratio of fixed costs to variable costs, and the Degree of Operating Leverage (DOL).
  • The ratios of fixed cost to total costs and fixed costs to variable costs tell us that if the unit variable cost is constant, then as sales increase, operating leverage decreases.

• Return on Assets

  • $Return\quad on\quad Total\quad Fixed\quad Assets\quad =\quad \frac { Net\quad Income }{ Average\quad of\quad Fixed\quad Assets }$
  • Return on Total Fixed Assets equals the business's net income divided by the average value of the business's total fixed assets for the accounting period.
  • You calculate the average value of the business's fixed assets by adding the value of the business's total fixed assets at the beginning of the accounting period to the value of the total fixed assets at the end of the period.

• Security Releases

  • The code that fixes the bug cannot be made public until the release is available, which means not only that the fixes cannot be committed to the repository until the day of the release, but also that the release cannot be publicly tested before it goes out the door.
  • Obviously, the developers can examine the fix among themselves, and test the release privately, but widespread real-world testing is not possible.
  • Because of this lack of testing, a security release should always consist of some existing release plus the fixes for the security bug, with no other changes.
  • For example, the project may have been working on a 1.1.3 release, with certain bug fixes to 1.1.2 already publicly declared, when a security report comes in.
  • But when 1.1.3 actually comes out, it will differ from 1.1.2 only in the security fixes, and all those other fixes will have been deferred to 1.1.4 (which, of course, will now also contain the security fix, as will all other future releases).

• Asset Turnover Ratio

  • $Fixed\quad Asset\quad Turnover\quad =\quad \frac { Net\quad Sales }{ Average\quad Net\quad Fixed\quad Assets }$
  • The fixed-asset turnover ratio is calculated in a similar manner, except instead of focusing all of the business's assets, the ratio is calculated using the business's fixed assets.
  • This ratio measures how well a business is using its fixed assets to generate sales.
  • To calculate the fixed asset turnover ratio, divide the total sales for the accounting period by the average fixed asset balance for the accounting period.
  • The average fixed asset balance equals the beginning balance of fixed assets for the period plus the ending balance of fixed assets for the period, then dividing by two.