fixed costs


Also found in: Thesaurus, Medical, Financial, Encyclopedia, Wikipedia.
Related to fixed costs: Variable costs, direct costs, Semi Fixed Costs

fixed costs

pl n
1. (Accounting & Book-keeping) another name for overheads
2. (Economics) costs that do not vary with output

fixed costs

Those costs a firm has which do not vary with every change in output, e.g. the cost of machinery or buildings. These contrast with variable costs which do vary with output, e.g. the amount spent on materials used in the production process.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.fixed costs - a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)
charge - the price charged for some article or service; "the admission charge"
cover charge, cover - a fixed charge by a restaurant or nightclub over and above the charge for food and drink
interest - a fixed charge for borrowing money; usually a percentage of the amount borrowed; "how much interest do you pay on your mortgage?"
fee - a fixed charge for a privilege or for professional services
due - a payment that is due (e.g., as the price of membership); "the society dropped him for non-payment of dues"
References in periodicals archive ?
The increase in the basic charge was meant to shift more of the utility's fixed costs onto this portion of the bill.
If all other costs besides fixed costs are in line there is only one answer--boost revenue.
Growth varies around the world and also within countries, and Hausmann points to fixed costs, especially those linked to infrastructure for water, transportation and electricity: "If income is expected to be low (perhaps because of other missing networks), it does not pay to connect a firm or a household to the network, because the fixed costs will not be recouped.
Production at prices below average variable costs of each unit sold generates a loss totaling all fixed costs and at least a part of variable costs.
Fixed costs reduce flexibility within budgets because fixed dollars cannot be used either as a billpayer for budget reductions or as a funding source to pay other bills.
GMR Infrastructure has asked for Rs 480 crore from the Andhra Pradesh Central Power Distribution Company to recover fixed costs for its 388.
With any young business, you need as few fixed costs as possible.
The fixed costs of the home, which include council tax, mortgage interest payments (not capital repayments), water rates, general repairs and rent will not normally be allowed unless part of the home is used exclusively for business, in which case business rates rather than council tax will apply with any private use of that expense being disallowed for tax purposes.
Fixed Costs: Many businesses lose sight of the fixed costs of the business, such as rent and salaries.
In this report, the author constructs the first ever estimates for each state and the District of Columbia of the short-run fixed costs of educating children in public schools.
1 We agree with their arguments that companies producing at an abnormally low level should not include the amount of unused fixed costs in the value of inventory produced, but we do not believe that they went far enough in advocating for improved disclosure of these costs of idle capacity.
After learning this opportunity cost rule, students are told that total costs are equal to the addition of fixed costs and variable costs.