Fixed costs

Fixed costs

Production costs that do not change when the quantity of output produced changes, for instance, the cost of renting an office or factory space. Contrast with variable costs.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Economy
Category: Economics
Company: The Economist
Product:
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Related terms

fixed cost

Retail; Supermarkets

An expense that does not change regardless of sales or productivity, such as insurance and rent.

fixed costs

Printing & publishing; Publishing

Budget and expenses that remain unchanged by the quantity of any pressrun. Compare variable costs; see estimate, quotation, unit cost, specifications.

fixed costs

Economy; Economics

Production costs that do not change when the quantity of output produced changes, for instance, the cost of renting an office or factory space. Contrast with variable costs.

fixed costs

Military; Missile defense

Costs that do not vary with the volume of business, such as property taxes, insurance, depreciation, security, and minimum water and utility fees.

fixed costs

Forest products; Forest engineering & harvesting

Operation costs that will remain relatively constant for all levels of output.

fixed costs

Fishing; Marine fishery

Costs that do not vary with output. Fixed costs can only be avoided if the firm goes out of business.

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