fixed cost

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Related to Fixed Expenses: variable expenses

fixed cost

[¦fikst ′kȯst]
(industrial engineering)
A cost that remains unchanged during short-term changes in production level. Also known as overhead; overhead cost.
References in periodicals archive ?
The increased time in the office will not raise fixed expenses.
Subtracting these traceable fixed expenses along with the variable expenses produces a more accurate individual contribution margin.
Consequently, we had ongoing fixed expenses but not enough people living there to pay for them.
Your fixed expenses include: mortgage or rent, property taxes, utilities, homeowner's expenses, car and life insurance, groceries, clothing and dry-cleaning costs, public transportation, gas and maintenance for your car, phone bill, household help, tax liability, credit card and bank payments, and miscellaneous necessary expenses.
Fixed expenses, notably property taxes and insurance, constituted the largest portion of expenses in 1992 (32 percent).
You've estimated that your total fixed expenses for the year will be $200,000 (including rent, insurance and administrative salaries).

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