Noun
a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)
Source: WordNetA firm with high fixed costs requires a large number of customers in order to have a meaningful return on investment. Source: Internet
And even though there is no or reduced money coming in, businesses still have fixed costs like insurances, equipment rentals and rent. Source: Internet
Businesses such as hotels and restaurants have been shut down for months and only those with enough savings have been able to pay the fixed costs with minimum revenue coming in, while others have been forced to close shop. Source: Internet
Gross margins declined by 696 bps y-o-y to 48.1 per cent owing to under absorption of fixed costs and factory overheads due to lower production in the quarter. Source: Internet
As it is a tool for a more accurate way of allocating fixed costs into product, these fixed costs do not vary according to each month's production volume. Source: Internet
Examples of fixed costs include the depreciation of plant and equipment, and the cost of departments such as maintenance, tooling, production control, purchasing, quality control, storage and handling, plant supervision and engineering. Source: Internet