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fixed cost

noun

  1. a cost unvarying with a change in the volume of business ( variable cost ).


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Example Sentences

Companies felt pressed to champion agile strategies in a competitive market and looked to the gig economy for the answer, minimizing fixed costs in the process.

From Digiday

In addition to the usual suspects of fixed costs — insurance, taxes, bank charges, POS, garbage, dishwasher, $9,000 monthly rent, hood cleaning, phone, loan repayments, and so on — Reem’s folds salaried management into this bracket.

From Eater

Lower the fixed costs and the enormous bureaucracy founders face when spinning off.

One set of fixed cost is all of the R&D—you need to come up with the chip’s ideas.

From Time

Doing so could mean more fixed costs at a time when companies wanted costs that could be dialed up and down in response to an unpredictable market.

From Digiday

So, Fridays at five o' clock the MRI machine is probably not being used, and that's a fixed cost.

Now on top of that fixed cost you have a marginal cost: the amount that it costs you to actually put a patient in a room.

You could see Groupon being a good way to get rid of products that are high fixed cost, low marginal cost goods.

Assume your fixed cost of getting the plane off the ground is $1300, so you've got a total cost of $1420 and revenue of $1500.

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