fixed cost


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Related to fixed cost: Direct cost, Average fixed cost, Sunk cost

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 portion of the typical monthly payment that covers whatever percentage of the building purchase price was borrowed becomes a fixed cost.
Considered a fixed cost as an entitlement similar to CIVPAY.
We use the reported capacity utilization ratios and our estimates of total fixed costs to separate total costs into the cost of resources used and the cost of idle capacity.
The more deeply one considers the notion of fixed costs, the more difficult it becomes to define a fixed cost.
When fixed costs are recovered through variable charges, such as an energy charge per kWh, a cooperative's fixed cost recovery is at the mercy of sales fluctuations due to weather, energy efficiency, conservation or self-generation.
If 20% of total distribution revenue is earmarked to cover these fixed costs, then the minimum scale required to break even is distribution revenue of $150 million (roughly $75 million of first-year commissions).
Increasing test volume reduces the fixed cost per test.
Subject pairs are presented with payoff tables that have entries differing only by a fixed cost.
Like other departments, the print shop's budget is comprised of what could be called fixed costs (e.
Therefore, credit managers should be alert to the size of the fixed cost component of a customer's cost structure.
And to complicate matters more, some costs are mixed costs consisting of a basic fixed cost plus a variable rate.