Definition of fixed costs in US English:

fixed costs

plural noun

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

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


fixed costs

/fɪkst kɔsts/