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fixed costs

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.
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.


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This business consistently generated income in the 50K-60K range and offer a lot of flexibility to its owner with low fixed costs.
Fixed costs are costs that do not vary with sales volume within a certain output range.
While the giant law firms have merged to gain more business, that expansion creates fixed costs, but by joining the Alfa network, Wright Lindsey & Jennings has a presence worldwide without the fixed costs.
 
 
 
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