Fixed Charge (Noun)
Meaning
A periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's fixed charge for the warehouse rental was $10,000 per month, regardless of the amount of goods stored.
- The business owner factored in the fixed charge of employee salaries when calculating the company's monthly expenses.
- The entrepreneur's fixed charge for insurance premiums remained the same each year, even as her business grew.
- The accountant listed the fixed charge of mortgage payments as a non-variable expense on the company's balance sheet.
- The small business owner had to budget carefully to cover the fixed charge of utility bills, which didn't fluctuate with sales.