What is a fixed cost?

A periodic cost that remains more or less unchanged irrespective of the output level or sales ...

	Monday, April 6, 2015 fixed cost   Term of the Day fixed cost A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages. While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from ... Learn more about this term Usage Example It is good to put a fixed cost on your product and not allow for any negotiations if you know that the demand is high.   Featured Article Impact of Globalization on Small Businesses The following is a classic story, often used by socialists to highlight the "evils of a capitalist society" - the small town grocer gets mercilessly taken out ... Read this article   Voice Your Opinion What do you wish you could do?   Take us with you! Download the BusinessDictionary app today.
	Copyright 2015 WebFinance Inc. All Rights Reserved. BusinessDictionary.com Term of the Day is published by WebFinance Inc., the operators of InvestorWords, InvestorGuide, and BusinessDictionary, and is sent only to those who have specifically requested it.   MANAGE SUBSCRIPTION | DISCLAIMER 10201 Fairfax Boulevard, Suite 570 Fairfax, VA 22030