Fixed cost
AccountingAlso called: Fixed vs variable cost
A cost that does not change with the volume produced or sold over the relevant range.
In plain terms
Rent, salaries and depreciation. They arrive whether forty customers come or four hundred.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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A cost that does not change with the volume produced or sold over the relevant range.
Rent, salaries and depreciation. They arrive whether forty customers come or four hundred.