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 ?
The increased time in the office will not raise fixed expenses.
Since there is no change in fixed expenses, net income also will increase by the same amount as the contribution margin, $14,375.
If fixed expenses do not change, then you will need to see 857 new patients ($30,000/$35 per new patient) to achieve your target net profit.
The break-even point is when total contribution margin equals total fixed expenses. At break-even, net income is zero.
The common fixed expenses are subtracted from the total contribution margin since they will not change if an individual leaves the practice.
Based on the complete sample of private sector respondents, fixed expenses, notably property taxes and insurance, constitute the largest source of expenses in 1988.
* Fixed expenses: Costs that remain constant regardless of sales.
Company A's annual fixed operating costs, including administrative salaries, office rent, utilities, travel, professional and other fixed expenses, are $425,000.

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