fixed costs


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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 company announced the loss of 193 jobs at the plants as part of a cost cutting exercise aimed at reducing fixed costs by CHF 40 million over the next 18 months.
Additionally, the allocation of facility-level fixed costs to products is arbitrary at best, because the facility-level costs support the company, not the individual products.
One of the major challenges that cooperatives face is how to effectively manage and recover a cooperative's "fixed costs." These are the costs that are present due to the fact that a customer is being served, and they do not increase or decrease based upon how much energy a customer uses or doesn't use.
30 November 2009 - Finnish flag carrier Finnair Oyj (HEL: FIA1S) said today it will sell parts of its ground handling subsidiary Northport and of Finnair Cargo Terminal Operations as of 1 December in a bid to cut its fixed costs and focus on its core operations.
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.
Arguments for large operators focus on their size and the inherent benefits, such as the ability to scale fixed costs in networks and IT, a stronger bargaining position with suppliers and internal sharing of best practices.
Since fiscal 1999, the Worcester schools have spent a decreasing percentage of their budget on direct instructional costs and an increasing percentage on fixed costs such as health insurance and utilities.
The Markowitz algorithm, however, excludes the existence of fixed costs, which may play an important role in the context of valuing customer segments and customer portfolios, as we will see.
A quick guide for analysis of loss-cost metrics recognizes that, on average, fixed costs represent just 20% to 25% of total program costs.
For example, a company that manufactures its own products or provides services using its own staff will tend to have a higher proportion of fixed costs. A firm that obtains its products for resale from another manufacturer or uses contractors to provide its services will tend to have a higher proportion of variable costs.
* Adjusting to demand fluctuations without significantly increasing fixed costs