# fixed costs

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Related to fixed cost: Direct cost, Average fixed cost, Sunk cost

## fixed costs,

n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation).

## fixed costs

the costs which are not affected by the size and the output of the enterprises in a business, such as a farm. Called also overhead costs. Includes interest on mortgage, rates, taxes.
References in periodicals archive ?
By contrast, special investigations or one-time tests would not ordinarily be considered part of the audit's fixed cost.
If we assume a long-run fixed cost of 10, say legal fees that do not vary by output but are avoidable each period of production, the LRTC and SRTCs will change.
If each of these firms had a down year and operated at 5% less, Ewer, Keller, and Olson would suggest that the companies each record a period expense of the 5% of fixed costs that they did not use that year.
Considered a fixed cost as Congress appropriates funding for RDTE items at program element level.
In subsection A, we compare market choices across fixed cost treatments and test for differences.
On the other hand, if the ISF print shop holds its charges at the \$10,000 level, it will incur a deficit because it has not recovered all of its fixed costs.
The final step is to calculate the break-even point by dividing total fixed costs by contribution per unit: 1,400 [pounds sterling] / 2 [pounds sterling] = 700.
Q - FC), where (2) FC = operating fixed cost p = unit price v = unit variable cost Q = quantity of output Profit = earnings before interest and taxes = EBIT = p.
To monitor your fixed cost percentage, separate your expenses into those that are either fixed irrespective of the volume of services or that vary with the volume of services.
About 80 percent of a residential customer's monthly bill is the cost of natural gas, with the remaining 20 percent made up of Avista's fixed cost to provide natural gas service.
The procedure used to be a fixed cost: you were male, you aged, you started getting up 3 or 4 times a night to relieve yourself, and you and your doctor determined a TURP was a fixed cost of your benign prostatic hypertrophy diagnosis.
First, let's see how much one more salesperson increases annual fixed cost.

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