Fixed Cost

Definition

A cost that does not change with the level of production or sales.

Visual Reference

Example

Fixed Cost is a fundamental concept used in financial statements and business planning.

In Practice

Also known as: Overhead, Constant Cost. Closely related to Variable Cost, Break-even. Contrasts with Variable Cost.

Word Usage

Pricing; Budgeting; Break-even analysis

Use Case

Applied in Basic Finance contexts: Pricing; Budgeting