fixed expenses


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Related to fixed expenses: variable expenses

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.

References in periodicals archive ?
Since there is no change in fixed expenses, net income also will increase by the same amount as the contribution margin, $14,375.
The common fixed expenses are subtracted from the total contribution margin since they will not change if an individual leaves the practice.
While fixed expenses are just that - fixed - fat can be trimmed from the discretionary category.
Company A's annual fixed operating costs, including administrative salaries, office rent, utilities, travel, professional and other fixed expenses, are $425,000.
EBITDAR covered fixed expenses, defined as interest expense plus lease payments, by about 2.
We anticipate that the consolidation of our operations and facilities will reduce our fixed expenses by approximately $1 million annually and will generate additional efficiencies and other important economies of scale.

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