Definitions for fixed cost
fixed cost

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.)

WikipediaRate this definition:0.0 / 0 votes

1. Fixed cost

   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 cost

   A fixed cost is a business expense that remains constant regardless of the level of output or production volume. It is not influenced by changes in business activities or market fluctuations. Examples of fixed costs include rent, salaries, insurance, and depreciation. These costs are incurred even if the production rate is zero and they don't change along with production or sales volumes.

WikidataRate this definition:0.0 / 0 votes

1. Fixed cost

   In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents being paid per month, and are often referred to as overhead costs. This is in contrast to variable costs, which are volume-related. In management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. In marketing, it is necessary to know how costs divide between variable and fixed. 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.

Matched Categories

1. • Charge

How to pronounce fixed cost?

1. Alex

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How to say fixed cost in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of fixed cost in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of fixed cost in Pythagorean Numerology is: 6

Examples of fixed cost in a Sentence

1. Italy Vice Director Fabio Panetta:

   Business people see entering capital markets as involving a fixed cost, to a great extent in terms of transparency, which outweighs the advantages.

2. Gary Schnitkey:

   There still is a fixed cost out there no matter what you do, so the incentive is to go out there and get the variable cost covered and eat into the fixed cost.

3. Seshagiri Rao:

   If they are making money in the domestic market, by exporting, as long as they're able to recover some contribution towards their fixed cost they're pushing volume.

4. Atlantic Equities analyst Chris Wheeler:

   The first quarter has been brutal, and has revealed the extent to which the fixed cost base – IT, infrastructure, salaries - absorbs a large portion of the much lower revenues, the biggest culprit remains FICC, which continues to also be a very capital intensive business.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=fixed cost
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Fixed_Cost
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=fixed cost