The allocation of shared fixed costs

We consider the problem of sharing the fixed costs of facilities among a number of users. Although the problem can be formulated and solved as an Integer Programme this provides limited accounting information. Ways of overcoming this are suggested. In addition we consider the issue of fairness among different possible cost allocations and how such `fair' costs may be derived

• Type: Journal
• Year: 2006
• Where: EOR
• Authors: Martin Butler, H. Paul Williams
• Keywords: EOR 2006, Fixed Costs, Limited Accounting Information, Possible Cost Allocations