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fixed cost

a cost unvarying with a change in the volume of business (distinguished from variable cost). Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2015.
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Examples from the web for fixed costs
  • Online education is characterized by extremely low fixed costs and low marginal costs.
  • Many of them cannot raise tuition without reducing demand and thus their ability to spread their fixed costs.
  • Plus, in a business with high fixed costs and low variable costs, what matters is that enough people pay.
  • The flat fee model allows you to have a much lower effective per minute rate since the fixed costs are automatically covered.
  • They have relatively low fixed costs but relatively high incremental costs.
  • Square's innovative payment system eliminates all of this: there's no credit check, no hardware costs, and no fixed costs.
  • fixed costs such as paper, printing and delivery have been drastically reduced.
  • Because there are a number of fixed costs in running any school or business and elasticity is greatly limited.
  • Most now have high fixed costs, in the form of hundreds of employees.
  • No longer does a producer have to make thousands, or hundreds of thousands, of items to recover his fixed costs.
British Dictionary definitions for fixed costs

fixed costs

plural noun
another name for overheads
costs that do not vary with output
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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Contemporary definitions for fixed costs
plural noun

business expenses that are constant for a company no matter what the production level is, e.g. rent's 21st Century Lexicon
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