It turns out that variable is also used in other ways as well. One of my clients explained in the old days of manufacturing that if a business had to make cuts in workforce or expenses that it would make those cuts across the board and often that was related to seniority. Today those cuts are made in each department based on results.
The example he provided was that if one department of the business failed to retain 10 percent of the existing business in a given area then they could expect a cut of expenses and investment - including workforce - in that area. That sounds harsh but it does put everyone in line so they understand the rules and have skin in the game.
This wasn't written so much as to discuss the difference between fixed and variable but rather to express to you and to remind me that the world is more complex than most casual observations would address. We will always move towards our most dominant thought and we tend to view the world through the lens we are most comfortable in viewing. The world is changing and some things we believed to be true may just be the tip of the iceberg experiencing change.
Joseph “Big Joe” Clark, whose column is published Saturdays, is a certified financial planner. He can be reached at firstname.lastname@example.org or 640-1524.