Fixed Cost A cost that remains constant, regardless of any change in a company's activity. Investopedia Says: A good example is a lease payment. If you are leasing a building at $2,000 per month, then you will pay that amount each month, no matter how well or how poorly the business is doing. Related Terms: Chasing Nickels Around Dollar Bills Contribution Margin Operating Expense Operating Leverage Operating Margin Outlay Cost Relevant Cost Semi-Variable Cost Sunk Cost Variable Cost |