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fixed cost
Thesaurus| Noun | 1. | fixed cost - a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)fixed charge, fixed costscharge - the price charged for some article or service; "the admission charge"cover charge, cover - a fixed charge by a restaurant or nightclub over and above the charge for food and drinkinterest - a fixed charge for borrowing money; usually a percentage of the amount borrowed; "how much interest do you pay on your mortgage?"fee - a fixed charge for a privilege or for professional servicesdue - a payment that is due (e.g., as the price of membership); "the society dropped him for non-payment of dues" |
fixed cost
fixed cost[¦fikst ′kȯst] (industrial engineering) A cost that remains unchanged during short-term changes in production level. Also known as overhead; overhead cost. fixed cost
Fixed costA cost that is fixed in total for a given period of time and for given production levels.Fixed CostAn expense that does not change from time period to time period. For example, a company may rent a piece of property for $4,000 per month. A company often prefers to have fixed costs because they reduce uncertainty, but this is not always possible.fixed cost A cost that remains unchanged even with variations in output. An airline with 20 airplanes has the fixed costs of depreciation and interest (if the planes are partially financed with debt), regardless of the number of times the planes fly or the number of seats filled on each flight. Firms with high fixed costs tend to engage in price wars and cutthroat competition because extra revenues incur little extra expense. These firms tend to experience wide swings in profits. Compare variable cost.AcronymsSeefat catfixed cost
Related to fixed cost: Direct cost, Average fixed cost, Sunk costSynonyms for fixed costnoun a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etcSynonymsRelated Words- charge
- cover charge
- cover
- interest
- fee
- due
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