fixed costs

Definitions

Business expenses that remain constant regardless of the volume of goods or services produced.

Operating costs that do not fluctuate with changes in production levels or sales activity.

Examples

The company needs to increase its sales volume to cover its high fixed costs.

Rent and insurance premiums are typical examples of fixed costs that a business must pay regardless of production levels.

Synonyms

overhead costs constant expenses operating expenses indirect costs sunk costs

Antonyms

variable costs fluctuating expenses direct costs discretionary spending