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Finance Dictionary and Glossary of Investment Terms
fixed cost
Definition 1.
A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.
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Definition 2.
A cost that remains constant, regardless of any change in a company's activity.
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Definition 3.
A cost that doesn''t vary. The cost of owning a warehouse, for instance, might be the same whether it is full or empty. It''s important in assessing a company to differentiate between fixed costs, variable costs and marginal cost.
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Definition 4.
A cost that is fixed in total for a given period of time and for given production levels.
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