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Glite Dictionary
fixed costs

fixed costs

1 2.9
Costs a business has to pay that do not change if production changes, like rent or insurance
  • noun
  • /fɪkst kɔsts/
  • Specialized
translation icon : costos fijos
  • Managing fixed costs effectively is crucial for a business to remain profitable during economic downturns.

So there are big fixed costs for operating savings account.

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Examples

  • Well, if we open a second store, what are the fixed costs and what are the variable costs?

  • There are so many fixed costs in state budgets.

  • You may be able to increase your volume by 30% or more before your fixed costs go up.

    Blog text (18)

  • So there are big fixed costs for operating savings account.

    MIT OpenCourseWare

  • Both guys, aren't there fixed costs to the the structure of a public institution?

    ReasonTV

  • Even though it is not covering its total costs, including its fixed costs (overhead), it is more than covering its variable (non-overhead) costs and is therefore able to cover at least some of its fixed costs.

    Academic text (1991)

  • First of all, the method by which total cost is calculated, stated simplistically, is that a factory's full fixed costs (plus some assumed profit) must be allocated to the production for the period.

    Academic text (1991)

  • And some kinds of innovation, whether Intel's semiconductor engineering or cutting-edge life sciences research, have inherently high fixed costs that tilt the playing field to the big guys.

    Blog text (18)

  • The Sacramento Municipal Utility District (SMUD) has a rate structure where many of these fixed costs are recovered through a monthly fee, rather than in a per-kWh charge.

    Blog text (14)

  • The bakery's high fixed costs, like rent and salaries, make it hard to lower prices during slow seasons.

Synonyms

fixed cost
vsfixed costs
  • Specialized
4 3.7

A regular business cost that does not change when production changes, like rent and insurance

has identical meaning but uses the plural to talk about all such expenses
fixed charge
vsfixed costs
  • Specialized
3.7

A regular payment that does not change when business changes, like rent or insurance

is similar but focuses on expenses generally rather than on single payments

How Liquid

liquid assets
  • Specialized
3 4.1
cash
∞ 1.0
accounts receivable
  • Specialized
4 5.2
inventory
279 3.6
fixed costs
  • Specialized
1 2.9

Surface Forms

fixed costs plural
fixed cost singular

Morphology

fixed + cost

The meaning is directly derivable from 'fixed' (remaining the same) modifying 'costs' (monetary amounts): together they indicate costs that do not change. This adjective–noun composition is semantically transparent and has close equivalents in many languages, so a B1 learner who knows both words should understand it.

Etymology

Fixed costs come from the image of something fixed in place, like rent or an insurance bill that is stuck to the business and does not move. That's why these bills are called fixed costs: they 'remain the same' no matter how much you sell.