Definitions for fixed costs
fixed costs

Princeton's WordNetRate this definition:0.0 / 0 votes

1. fixed charge, fixed cost, fixed costsnoun

   a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)

WiktionaryRate this definition:0.0 / 0 votes

1. fixed costsnoun

   a cost of business which does not vary with output or sales; overheads.

WikipediaRate this definition:0.0 / 0 votes

1. fixed costs

   In accounting and economics, 'fixed costs', also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or rents being paid per month. These costs also tend to be capital costs. This is in contrast to variable costs, which are volume-related (and are paid per quantity produced) and unknown at the beginning of the accounting year. Fixed costs have an effect on the nature of certain variable costs. For example, a retailer must pay rent and utility bills irrespective of sales. As another example, for a bakery the monthly rent and phone line are fixed costs, irrespective of how much bread is produced and sold; on the other hand, the wages are variable costs, as more workers would need to be hired for the production to increase. For any factory, the fix cost should be all the money paid on capitals and land. Such fixed costs as buying machines and land cannot be not changed no matter how much they produce or even not produce. Raw materials are one of the variable costs, depending on the quantity produced. Fixed cost are considered an entry barrier for new entrepreneurs. In marketing, it is necessary to know how costs divide between variable and fixed costs. This distinction is crucial in forecasting the earnings generated by various changes in unit sales and thus the financial impact of proposed marketing campaigns. In a survey of nearly 200 senior marketing managers, 60 percent responded that they found the "variable and fixed costs" metric very useful. These costs affect each other and are both extremely important to entrepreneurs. In economics, there is a fixed cost for a factory in the short run, and the fixed cost is immutable. But in the long run, there are only variable costs, because they control all factors of production.

ChatGPTRate this definition:0.0 / 0 votes

1. fixed costs

   Fixed costs are business expenses that remain unchanged regardless of the level of production or sales. These costs are incurred regularly and include expenses such as rent, salaries, insurance, depreciation, and utilities. They are considered "fixed" because they do not fluctuate with business activity levels.

Matched Categories

1. • Charge

How to pronounce fixed costs?

1. Alex

   US English

   David

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   Mark

   US English

   Daniel

   British

   Libby

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   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

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   Veena

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   Priya

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   Neerja

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   Zira

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   Oliver

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   Wendy

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   Fred

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   Tessa

   South African

How to say fixed costs in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of fixed costs in Chaldean Numerology is: 7

2. Pythagorean Numerology

   The numerical value of fixed costs in Pythagorean Numerology is: 7

Examples of fixed costs in a Sentence

1. Chief Executive Pierre-Pascal Urbon:

   We have effectively lowered fixed costs and increased our financial and operational flexibility with extensive measures. We can therefore better respond to the volatile market development.

2. Daniel Kirchert:

   Given the current situation, it is not enough for any startup to come up with good products and be fast to market. At least it's equally important to manage cost. Not only fixed costs but variable cost.

3. Alexandra Heath:

   The decline in (LNG) prices is unlikely to lead to a significant reduction in production from existing producers because the high fixed costs of building the infrastructure have been paid and marginal production costs are relatively low.

4. Haakon Amundsen:

   We have estimated that fixed costs could fall by 25 percent and that looks achievable, it is necessary as they need to adjust to the much lower activity.

5. Chris Richter:

   Every automaker is going to have to do whatever they can to preserve fixed costs to try and contain the situation, for Nissan in particular this doesn't come at a good time because it's trying to recover from some bad financials, and it has an old product line up and needs to invest in new product technology.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=fixed costs
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Fixed_Costs
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Fixed_Costs
4. ^ ChatGPT
   https://chat.openai.com