fixed cost

Definition

A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.

Use fixed cost in a sentence

I was glad that it was a fixed cost because that meant that it would not change no matter what happened.

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The fixed cost element was fully understood as only the variable cost needed a further understanding into the elements comprising it.

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Though we recently have seen a spike in overall production, our fixed cost of bringing products to market remain stable resulting in greater contributions to margin.

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degree of operating leverage (DOL) fixed costs and fixed expenses