Utility cost analysis

Utility cost analysis is the analysis of the fixed employment costs within the production cost control, in which no real cost deviations, but only the utilization of the production capacities are examined. The planned block of fixed costs for a production or manufacturing cost center is broken down into two parts. Utility costs indicate that part of the fixed costs that is used by the actual employment in relation to the maximum employment (= capacity).
Idle costs identify that part of the fixed costs that is not used by the actual employment in relation to the maximum employment (= capacity) (= rest of the fixed costs). The long-term disclosure of high idle costs in a production or manufacturing cost center is an indicator of a planned reduction in capacity (partial shutdown, disinvestment).

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