FIXED COSTS AND FLIGHT FROM PROPERTY. PROSPECTS FOR THE “GARAGE” AND DIGITAL ECONOMIES

  • I.V. Anokhov
    • Baikal State University
Keywords: fixed costs, expenses, cost price, income, property, turnover, capital, track effect

Abstract

Ways to reduce fixed costs of manufacturing firms using digital technologies and organizational tools are considered. The company's activities are divided into four functional levels: production, supply, economic, and design and technology. The article concludes that in the conditions of increasingly large-scale digitalization of all spheres of the state, society and economy, their transparency will increase. This, on the one hand, makes it easier to copy successful business decisions, and, on the other hand, increases the supervisory and tax pressure. All this is reinforced by the inability of the world economy to expand its size due to its reaching the boundaries of the global market, which inevitably affects all regional markets. In this situation, we can expect a slowdown in the turnover of capital invested in fixed assets and their transformation into a source of losses. This may cause a flight from property, some signs of which are already visible at this time. The article examines the management of fixed costs in the digital economy. It is concluded that the main type of fixed costs will be the cost of such an element of fixed assets as a "Calculator", access to which will be open to all economic entities. This will lead to maximum openness of their business activities and force them to move to a "garage" economy. The main provisions and conclusions of the article can be used in scientific and educational activities when considering questions about the nature and trends of development of production companies.

References

Received 2020-03-06
Published 2020-04-23
Section
Economics
Pages
181-190