fixed costs
Unchanging business expenses
Fixed costs are business expenses that remain constant regardless of production volume or sales activity.
Rent, insurance premiums, and salaried wages are fixed costs—they stay the same whether you produce one unit or ten thousand.
The opposite are variable costs, which fluctuate with output.
The company's fixed costs were eating into profits during the slow season.
Asset value reduction over time
- amortizationGradual debt reduction schedule
- overheadLocated directly above
- insuranceContractual risk coverage
- property taxesGovernment charges on land
lease payments · rent · salaries · utilities · licenses · permits · subscriptions · software licenses
Payment for temporary use
- salariesFixed regular payments for work
- insurance premiumsPeriodic payments for coverage
- property taxesGovernment charges on land
- franchise feesPayments for brand rights
Not varying at all
- constantFixed, unvarying quantity
- stableSecure and unchanging
- predictableAble to be foreseen
- recurringHappening repeatedly over time
inflexible · set · predetermined · contractual · obligatory · time-based · committed · unavoidable
depreciation
Asset value reduction over time
- amortizationGradual debt reduction schedule
- overheadLocated directly above
- insuranceContractual risk coverage
property taxes · lease payments · rent · salaries · utilities · licenses · permits · subscriptions · software licenses · franchise fees
rent
Payment for temporary use
- salariesFixed regular payments for work
- insurance premiumsPeriodic payments for coverage
- property taxesGovernment charges on land
unchanging
Not varying at all
- constantFixed, unvarying quantity
- stableSecure and unchanging
- predictableAble to be foreseen
recurring · inflexible · set · predetermined · contractual · obligatory · time-based · committed · unavoidable · periodic
- transport financepassenger fares, pricing strategy, cost structure, baggage fees, landing fees
- business financeaccounting, balance sheet, revenue stream, profit margin, budget
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- personal financesavings, income, credit, investments, bills
- budgetingbudget, budgets, budget app, budget template, budget allocation
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
fixed costsvariable costs
Expenses changing with output
variable expenses · direct costs · unit costs · production costs
fix, fixed, costs, fixing, fixture, prefix, fixes, affix, unfixed