Increase the Output Over Which a Fixed Cost ICD is Used

This action reduces the quantity of a unique fixed cost ICD used to produce a unit of Output by increasing the units of Output. For example, a new product design, or a new process patent, are both ICDs that have virtually limitless capacity for use. These are fixed cost ICDs. You pay for them once and you can use them over a virtually unlimited amount of Output. Their ICD/O ratios are limited only by the current demand level for Output.

Use fixed cost ICDs with more customers

By using fixed cost ICDs with more customer volume, the unit cost of the ICD declines as a component of the final Output cost.

Combine fixed cost ICDs with competitors into a separate business. Combine ICDs from the major cost functions of the company:
Combine Present ICDs

No. Industry SIC Year Notes
1 6021 1995 Security First, the first Internet-based virtual bank, was developed by a consortium of three regional banks and two software firms, Five Paces Software and SecureWare.
2 6512 1999 Simon Property Group and Time Warner plan to merge the experience of retail and etail through a network of kiosks, broadcasts, web sites, print media, and live entertainment.

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