fixed cost meaning

• Noun: fixed cost  fikst kóst
  1. A periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)
     - fixed charge, fixed costs

  Derived forms: fixed costs

  Type of: charge

  Encyclopedia: Fixed cost

• 
  [Business]
  noun [C, usually pl.]

  (Accounting )

  an amount of money used to run a business that remains the same whatever quantity of goods is produced:

  Rent is a fixed cost.

  They are used to buying goods from the Far East, where the fixed costs are much lower.

  ⇨ VARIABLE COST

• 
  [Economics]
  The part of total costs which does not depend on the level of current production. This includes items such as management costs and the costs of plant security. Fixed costs do not affect the profit-maximizing level of output in the short run, though in the longer run a firm which cannot cover its fixed costs will become insolvent and exit.
• 
  [Finance]
  A cost that is fixed in total for a given period of time and for given production levels.

• fixed limit of construction cost:    [Architecture]The ...
• fixed-cost contract:    [Architecture]See ...
• cost-plus a fixed-fee contract:    [Defence] A cost-r ...

Examples

1. fixed costs are the costs incurred for the fixed resources of the firm.
2. to assign a fixed cost to a task
3. identify types of fixed cost
4. assign a fixed cost to a task
5. fixed cost = a cost that remains constant even if the task duration changes