Library Header Image
LSE Research Online LSE Library Services

The allocation of shared fixed costs

Williams, H. Paul and Butler, Martin (2006) The allocation of shared fixed costs. European Journal of Operational Research, 170 (2). pp. 391-397. ISSN 0377-2217

Download (244kB) | Preview
Identification Number: 10.1016/j.ejor.2004.07.046


We consider the problem of sharing the fixed costs of facilities among a number of users. Typically the users have a benefit or revenue from the use of the facilities. Although the problem can be formulated and solved as an integer programme this provides limited accounting information. Such information is often needed in order to (i) decide on which facilities are viable and (ii) to charge the users. It is shown that it is impossible to meet both these needs in a satisfactory way. We examine different ways of partially meeting them. In addition, we consider the issue of fairness among different possible cost allocations and how such ‘fair’ costs may be derived.

Item Type: Article
Official URL:
Additional Information: © 2006 Elsevier.
Divisions: LSE
Subjects: Q Science > QA Mathematics
Date Deposited: 22 May 2007
Last Modified: 20 Jul 2021 02:00

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics