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 ?
11) We maintain the change in fixed costs caused behavior to be different in these last two experiments.
b) How would changes in price, variable costs, fixed costs, and service volume affect a surplus?
Like other departments, the print shop's budget is comprised of what could be called fixed costs (e.
To use Hutt's analysis, the break-even point can be determined by calculating your fixed costs (unvarying expenses), variable costs (fluctuating expenses) and your contribution margin (selling price per unit minus variable expenses per unit).
And because the gas-pump fees will reduce the number of uninsured drivers, he notes, insurance companies should be able to lower their fixed costs.
Fixed costs will remain constant in total amount whether or not changes occur in the activity level.
The savings are expected to result from major reductions in plant fixed costs, functional support staffs at both the business and corporate group levels and in selling and administrative expenses; reductions in variable costs stemming from raw material efficiency improvements; reductions in interest costs; and divestiture of several smaller businesses not essential to the company's long-term strategy.
By converting formerly fixed costs into variable costs, contact centers can both better control expenses and manage capacity requirements.
The decoupling mechanism is a three-year pilot program which will allow Avista to separate in the rate structure its fixed costs from the costs of purchasing natural gas to serve customers and to recover a portion of its fixed costs not recovered because of reduced energy usage by customers.
Operating leverage is important to firm management for one reason, additions to operating fixed costs affect a firm's value by increasing risk as measured by the variability of returns (Lev, 1974, and Berner, 2002).
While all the costed flocks achieved a positive gross margin over variable costs, high fixed costs (especially labour, rent and power and machinery) on many farms were responsible for the disappointing enterprise profitability at net margin level," said MLC senior economic analyst Jane Connor.