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fixed cost

   Also found in: Dictionary/thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.

fixed cost

Or overhead cost, which does not vary regardless of changes in output (not a variable or direct cost). If a company increases its output by one third; variable costs will increase in proportion with this but fixed costs will stay the same. Examples include charges, property taxes, and rent.



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? Mentioned in ? References in periodicals archive
 
Fixed costs are costs that do not vary with sales volume within a certain output range.
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For years, as high fixed costs associated with the mobile industry dominated competitive strategies, the belief was that larger operators with a higher market share spread their fixed costs across their larger customer base.
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