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fixed cost
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   Also found in: Dictionary/thesaurus, Financial, 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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TR - TVC < 0), theoretically the organization should discontinue operations and incur a net loss equal to the sum of total fixed costs (TFC), and interest expense (IE).
The Total Fixed Cost incurred by a sample unit of Krishnagiri district was estimated to be Rs.
Rent, accommodation and machinery depreciation, utilities and accountancy fees brought the total fixed costs to pounds 618 per cow, while variable costs amounted to pounds 238 per cow.
 
 
 
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