fixed costs


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Related to fixed costs: Variable costs, direct costs, Semi Fixed Costs

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 ?
The first hypothesis we wish to analyze is that there is no difference between behavior in the four sessions with low fixed costs and the two sessions with high fixed cost.
The break-even point represents the level of revenue that equals the total of the variable and fixed costs for a given volume of output service at a particular capacity use rate.
In this and any situation where work is taken to an outside vendor for what appears to be a lower price rather than to an ISF, the city as a whole will incur a loss equal to the difference between the supposed savings (in this case, $1,000) and the portion of the ISF's price which represents fixed costs (in this case, $6,000) - again, a loss of $5,000, in this example.
Step 2: Divide your annual fixed costs per unit by your contribution margin.
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 two identified savings would reduce fixed costs by 140 [pounds sterling] to 1,260 [pounds sterling] and increase the contribution per unit by 0.
There logically exists a lower unit variable cost value that could compensate for increased operating fixed costs sufficient to leave both breakeven output and DOL unchanged, but engineering and economic relationships determine that value more than does management.
Since the economic size problem is driven so much by uncontrollable fixed costs, monitoring the agency's fixed cost percentage each year is a good way of setting up early warnings.
It has begun to sell its hospitals with their high fixed costs.
KMM's example illustrating the sustainability of flat-rate pricing depends on the presence of firm-level fixed costs.
IT outsourcing is the most well-known way to move fixed costs to variable, but it is not the only technique organizations will employ.
Roy Northridge looks at the airline industry to illustrate why the idea of fixed costs is is no longer appropriate in today's economy