Definition of fixed costs in English:

fixed costs

plural noun

  • Business costs, such as rent, that are constant whatever the amount of goods produced.

    • ‘The beer business is one where fixed costs are high, so scale is vital.’
    • ‘Retailers have high fixed costs, so small movements in trading volumes have a disproportionately large impact on earnings.’
    • ‘That's partly because of the huge fixed costs of running factories even through periods of low demand.’
    • ‘You have fixed costs, you have variable costs, and you have profit margins.’
    • ‘In fact, as the business grows and increases its fixed costs, its operating profit margins are likely to suffer in the short run.’
    • ‘However, he said the hotel business had changed over the past decade, with fixed costs a growing concern.’
    • ‘They want to know my outgoings, my fixed costs, my capital outlay, my VAT number, my date of incorporation.’
    • ‘You have grown quickly and taken on fixed costs but you cannot convert the level of business into cash quickly enough to meet your fixed costs.’
    • ‘They finally had enough revenues to cover their fixed costs and marketing expenses.’
    • ‘They have laid off staff and renegotiated fixed costs, from lease payments to Internet access.’
    • ‘It may be that such a company has underpriced its products, leaving it insufficient margin to cover its fixed costs.’
    • ‘In industries with relatively high fixed costs, price discrimination is pursued vigorously.’
    • ‘The fixed costs, variable costs, the interest expense and depreciation are allowable deductions.’
    • ‘Main financial variables were hospital operating costs, fixed costs, and variable costs.’
    • ‘Short on revenues, the company had high fixed costs, including rent for office space, furniture, and computers.’
    • ‘In contrast to fixed costs, variable costs change in direct proportion to the number of patients.’
    • ‘You don't have as much built-in overhead or as many fixed costs as companies that have been around longer tend to have.’
    • ‘Railroads could not recover their fixed costs by offering prices that covered only the marginal costs of the interstate trip.’
    • ‘First, as scale economies grow, fixed costs rise and marginal costs fall.’
    • ‘That is because the high fixed costs make the marginal cost of adding passengers on a partially-filled flight almost negligible.’
    expenses, outgoings, disbursements, overheads, running costs, operating costs
    View synonyms


fixed costs

/ˌfɪkst ˈkɒsts/