A cost that is constant regardless of the level of sales or production. For instance, in a manufacturing plant, expenses such as rent, depreciation, and insurance must be paid even if the factory closes down for a two-week period. Fixed costs contrast with variable costs, such as temporary labor or materials that are used to produce goods, which vary depending on the level of sales or production.
fixed cost - Investment & Finance Definition
Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Used by arrangement with John Wiley & Sons, Inc.
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"fixed cost." YourDictionary, n.d. Web. 14 January 2019. <https://www.yourdictionary.com/fixed-cost>.
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fixed cost. (n.d.). Retrieved January 14th, 2019, from https://www.yourdictionary.com/fixed-cost
