The cost that a firm bears if it produces at all and that is independent of its output. The presence of a fixed cost tends to imply increasing returns to scale. Contrasts with variable cost.
A cost item for a piece of equipment which does not vary in the aggregate or total. In other words, the production or utilization of the equipment does not change the total cost. e.g. interest, insurance, annual depreciation. However, the per unit cost may vary inversly as utilization increases.
Cost that remains constant in the short term when the quantity produced increases or decreases within certain scales of production.
A production cost which does not vary significantly with the volume of output. An example would be administrative costs. (Also see VARIABLE COST).
A set cost, under terms of contract, even if no energy was produced.
a production cost which does not vary much with the volume of output eg. administrative costs.
a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)
a cost incurred whether a firm produces or not
an expense a hospital must bear regardless of volume of care, such as electricity or mortgage payments
The total cost per period of time of the fixed inputs.
Fixed costs are operating expenses that are incurred to provide facilities and organization which are kept in readiness to do business without regard to actual volumes of production and sales. Fixed costs remain relatively constant until changed by managerial decision. Within general limits they do not vary with business volume. Examples of fixed costs consist of rent, property taxes, and interest expense.
An input with a fixed cost is one where the cost is independent of the output level. For a firm, rent and insurance are fixed costs.
Cost that remain constant regardless of the number of units produced.
Costs that do no vary in relation to the amount of service provided.
A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.
Costs of generation projects incurred regardless of the amount of energy produced. Such costs normally include capital costs, the cost of financing construction (in the form of interest) and insurance.
Costs that don't vary due to production volume. E.g., rent, insurance, taxes, etc.
A cost which is incurred for an accounting period, and which, within certain output or turnover limits, tends to be unaffected by fluctuations in the levels of activity (output or turnover).
Cost associated with capital investment such as equipment, overhead, property taxes; any cost included in the cost of service that does not tend to fluctuate with the amount of energy produced
A cost that is determined by the duration of the roadshow and is unaffected by the level or intensity of activity.
Static expenses that do not fluctuate with output volume and become progressively smaller per unit of output as volume increases.
a cost that does not change as sales volume changes (in the short run.) Fixed costs normally include such items as rent, depreciation, interest, and any salaries unaffected by ups and downs in sales.
Includes the cost of all promotion or advertising as well as any allocated overhead costs.
A cost or expense that does not vary in the short run with the quantity of output produced.
A cost that does not vary with usage or throughput of work. Examples are a standard term maintenance contract for a server or a corporate software licence (within agreed User limits).
A business cost that remains constant regardless of the level of operating activity or production. Contrast with variable cost.
a cost of production that does not change when there is a change in the amount produced. A printing company press are common fixed costs for a printing business.
A fixed cost is one which, within certain output or turnover limits, tends to be unaffected by fluctuations in the levels of activity (output or turnover). A good example would be the rent and rates charge for an office, or the employment costs of staff who provide services not directly related to production or output (e.g. the accounting department).
A cost that is fixed in total for a given period of time and for given production levels.
Costs that don't change with changes in volume
Certain costs which in the aggregate do not vary in amount regardless of the quantity of gas sold or transported.
An expenditure or expense that does not vary with volume level of activity.
An indirect cost that remains relatively constant, irrespective of the level of operational activity. (APTA)
An expenditure that does not vary with volume of activity, at least in the short run.
A cost that remains constant, regardless of any change in a company's activity.
A cost of production that is independent of the quantity produced; a fixed costs must be paid even if nothing is produced. For example, if a trucking company buys a new semi-truck by taking out a 5-year loan to buy the truck, the loan must be paid (i.e., the truck must be paid for) even if the company decides to shut down and not operate at all. This fixed cost of production must be paid whether the company shuts down, reduces its production, or operates at full capacity. Fixed costs such as this are the opposite of variable costs, which depend on the amount produced. In the example above, gasoline would be a variable cost – if the company does not operate, it does will not have to purchase any gasoline, and the amount of gasoline purchased depends on the amount produced. Source: EconPort See also: Variable Cost
Fixed costs are operating expenses that are incurred when providing necessities for doing business and have no relation to the volume of production and sales (as opposed to "variable costs"). Examples are rent, property taxes, and interest expense.
Fixed costs are expenses whose total does not change in proportion to the activity of a business, within the relevant time period or scale of production. For example, a retailer must pay rent and utility bills irrespective of sales volumes. Fixed costs include, but are not limited to, overheads (rent, insurance, and such) and can include direct costs such as payroll (particularly salaries).