Usage costs are the part of the fixed costs that describes the capacity used. The calculation is made with the help of the degree of employment.
Table of Contents
Definition / explanation
In cost and performance accounting, the fixed costs are shown in Idle costs und Nutzkosten unterteilt. Während die Idle costs für den ungenutzten Teil als Begriff stehen, stellen die Nutzkosten den genutzten Anteil des Unternehmens und der Maschinen dar.
So they show the capacity utilization. Fixed costs such as wages or rent remain fixed, regardless of how high the capacity utilization of a company is.
Calculate utility costs
Since the utility costs are related to the working production, these can be compared to the fixed costs and the utilization can be recorded numerically. The formula for this is:
Usage costs = fixed costs x degree of capacity utilization
Capacity utilization rate
The capacity utilization rate can be calculated as follows:
Actual utilization: possible utilization