My teaching experiences - Fixed versus variable cost

Some interesting discussion on a case in the class two days back:

Student: Salary is the fixed cost.

Me: Why do you say that? Why is it not a variable cost?

Student: It does not change.

Me: What if I decide to grant increments every month. Now it will change every month.

Student: It still remains same for a month.

Me: We grant raise every Week.

Student: Confused but holds the argument: It is still fixed for the week.

Me: We decide to grant increment every day.

Student: Really confused now. Yes, it will be a variable cost now.

Another student: It will actually be variable fixed cost.

I could not stop my laugh at this point.

IIM Review Committee

There has been fair amount of criticism in IIM fraternity about certain provisions in the report of IIM Review Committee. One of such provisions relates to creation of PAN IIM Board. I personally believe that creation of PAN IIM Board is a step in right direction.

IIMs, though have common ownership, have left some critical areas that need better coordination. It is widely known that IIMs (especially the older ones) do poach faculty members from the newer ones. Consequently, older IIMs are able to maintain reasonable faculty strength. However, the new IIMs suffer acute shortage of faculty. I personally would like older IIMs to display leadership in grooming faculty and help the new IIMs to the extent possible.

PAN IIM Board will facilitate better coordination of key administrative matters and better understanding between IIMs. We must not forget that we need Cabinet despite having independent ministries for making decisions.