fixed cost
nounUK /fɪkst kɒst/
US /fɪkst kɔːst/
A fixed cost is money a business must pay every month even if it sells nothing.
The bakery's rent is a fixed cost it pays whether or not it sells any bread.
RELATED WORDS
OTHER MEANINGS
2. A cost in accounting that does not change when the amount of goods or services produced changes.
Depreciation on the factory machine is treated as a fixed cost in the yearly report.
3. In personal finance, a regular bill that stays the same each month, like a phone plan.
Her phone bill is a fixed cost she can plan for in her monthly budget.
4. A cost that a company must pay regardless of how busy it is, such as insurance.
Business insurance is a fixed cost that stays the same during slow and busy seasons.