Fixed Costs (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 included salaries, insurance premiums, and the lease on the building.
- High fixed costs were eating into the restaurant's profits during the off-season.
- Fixed costs, such as property taxes and interest on the mortgage, had increased significantly.
- Rent was the company's largest fixed cost, taking up over a quarter of the annual budget.
- Utility bills, security systems, and building maintenance were among the bank's unavoidable fixed costs.