Costs that do not vary with production volume. Typical examples include plant, buildings and equipment. Faced with unpredictable levels of activity due to changing economic conditions, many organisations seek to reduce their fixed costs and convert fixed costs into more flexible or variable costs. Outsourcing and leasing are two procurement-related consequences. See also Asset and Expenditure, Capital.« Back to Glossary Index
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.