Fixed Cost (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 costs, including rent and utilities, remained steady despite fluctuations in sales.
- Salaries, benefits, and rent were the main fixed costs for the small business.
- Variable costs, such as raw materials and labor, were closely tied to production levels, while fixed costs like mortgage payments remained constant.
- As the owner of a retail store, her fixed costs included insurance, lease payments, and equipment maintenance.
- The accountant carefully separated the company's fixed costs, including depreciation and interest expenses, from its variable costs.