fixed cost

Definition

A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.

While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from those with high variable costs. This difference affects the financial structure of the organization as well as its pricing and profits. The breakeven point in such organizations (in comparison with high variable cost organizations) is typically at a much higher level of output, and their marginal profit (rate of contribution) is also much higher.

Use 'fixed cost' in a Sentence

It is good to put a fixed cost on your product and not allow for any negotiations if you know that the demand is high.

I was analyzing my electricity bill and I noticed I pay some even if I do not use the electricity because it has a fixed cost element to it.

Utility cost every month for your building would be considered as a fixed cost, which is constantly the same every month.

单词	a fixed cost
释义	fixed cost Definition A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages. While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from those with high variable costs. This difference affects the financial structure of the organization as well as its pricing and profits. The breakeven point in such organizations (in comparison with high variable cost organizations) is typically at a much higher level of output, and their marginal profit (rate of contribution) is also much higher. Use 'fixed cost' in a Sentence It is good to put a fixed cost on your product and not allow for any negotiations if you know that the demand is high. I was analyzing my electricity bill and I noticed I pay some even if I do not use the electricity because it has a fixed cost element to it. Utility cost every month for your building would be considered as a fixed cost, which is constantly the same every month.
随便看	HUD-1 statement hue Hulbert Financial Digest rich text format (RTF) RICS House Price Balance rider Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 rifle approach right right of accumulation right of egress right of first offer right of first refusal right of foreclosure right of possession right of redemption right of rescission right of silence right of survivorship right of way rights arbitration right-shoring rights in data rights issue rightsizing