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fixed expenses

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Fixed Cost
An expense that does not change from time period to time period. For example, a company may rent a piece of property for $4,000 per month. A company often prefers to have fixed costs because they reduce uncertainty, but this is not always possible.

fixed expenses

Expenses that continue at relatively stable levels,month after month or year after year,regardless of occupancy levels,retail sales,or other areas of revenue,including property rent or depreciation,some minimal level of personnel expenses,and some minimal level of utilities.Contrast with variable expenses,which are more or less directly tied to revenue;as revenues increase,so will the expenses.



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Fixed Expenses: Prepare a list or table of all of your monthly fixed expenses.
The contribution less fixed expenses equals net income.
This is a buffer for the fixed expenses that maybe incurred.
 
 
 
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