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 ?
If fixed expenses do not change, then for every $1.00 increase in total revenue, net income will increase by 40 cents.
Subtracting these traceable fixed expenses along with the variable expenses produces a more accurate individual contribution margin.
While fixed expenses are just that - fixed - fat can be trimmed from the discretionary category.
In the other direction, fixed expenses (primarily composed of property taxes) that usually rise by 10 percent or more, rose by 6.5 percent between 1987 and 1988.
The fixed expenses and rent at this deli are very low.
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).
The continued rise, however, in fixed expenses has eliminated gains in estimated net operating income.

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