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fixed expenses |
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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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