fixed costs

Definition of "fixed costs"
  1. Expenses that remain the same regardless of the activity level, like terminal leases, rent, and property taxes
How to use "fixed costs" in a sentence
  1. While the income of the business was reduced due to fewer customers, the fixed costs such as rent and utilities remained the same.
  2. Fixed costs often include long-term obligations that the company must pay regardless of its performance.
  3. In their financial planning, they calculated the fixed costs first to determine the minimum earnings needed to break even.

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