fixed costs
/ˈfɪkst kɒsts/ · fix·ed cos·ts
noun
- A cost of business which does not vary with output or sales; an overhead. Our fixed costs are too high.
- Expenses that remain constant despite changes in production or sales, such as rent, salaries, and insurance. The company's fixed costs are a significant portion of its total expenses.
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Did you know? The concept of fixed costs is crucial in business and economics, as it helps companies make informed decisions about pricing, production, and resource allocation.