1 sense of fixed cost

WordNet-Online
Free dictionary and thesaurus of English. Definitions, synonyms, antonyms and more...
Hint: double-click any word to get it searched!

Definitions from the Web

Fixed Cost

Fixed cost is a term used in accounting and economics to refer to expenses that do not change with the level of production or sales volume. Regardless of the level of activity, fixed costs remain constant.

Example sentences:

The rent for the office space is a fixed cost for the company.
Even if the business produces more goods, the machinery lease remains a fixed cost.
Depreciation of assets is considered a fixed cost because it does not fluctuate with sales.
The salaries of management staff are classified as fixed costs since they are unlikely to change in the short term.