Fixed cost

In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents being paid per month, and are often referred to as overhead costs. This is in contrast to variable costs, which are volume-related (and are paid per quantity produced).

In management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales.

In marketing, it is necessary to know how costs divide between variable and fixed. This distinction is crucial in forecasting the earnings generated by various changes in unit sales and thus the financial impact of proposed marketing campaigns. In a survey of nearly 200 senior marketing managers, 60 percent responded that they found the "variable and fixed costs" metric very useful.

Podcasts:

PLAYLIST TIME:

Latest News for: fixed costs

How looser affordability rules may widen home ownership in the UK

The Observer 06 Apr 2025
Assuming they take out a two- or three-year fixed-rate mortgage, they may now be able to borrow £210,000, up from £196,000 before ... The average cost of a new fixed-rate mortgage has come down a little in recent months.

UK mortgages: warning over big fees as homebuying season arrives

The Observer 06 Apr 2025
Over the past five years the average product fee on a fixed-rate mortgage has risen by £81 to £1,121, according to the data firm Moneyfacts ... On top of the product fee, there could also be legal costs to consider when buying a house.

Layin’ It on the Line: The cost of living is rising — How to ensure you don’t outlive your money

Provo Daily Herald 05 Apr 2025
Inflation keeps pushing up the cost of housing, health care and everyday expenses, making it essential to have a retirement strategy that lasts as long as you do ... What cost $100 today could cost $130 in a decade if inflation stays around 3% per year.

Are YOU living in 'fuel poverty' without knowing? Interactive map of 36,000 neighbourhoods reveals almost ...

The Daily Mail 05 Apr 2025
Their disposable income after housing and fuel costs must also fall below the poverty line – or less than around £20,700 ... 'This shows just how devastating the ongoing cost of living crisis is.

Historic Grade II-listed TOWER in Northampton up for auction for £225k

This is Money 05 Apr 2025
Anyone buying a listed property needs to be aware of the potential challenges and additional costs involved ... Maintenance costs for listed properties can be high, particularly if specialist trades are required ... How to compare mortgage costs.

Never put this basic home item in the laundry, expert warns — it could destroy ...

New York Post 05 Apr 2025
A repair technician warns that wet bath mats can be so heavy they might damage washing machines, leading to repairs costing more than $1,000 ... “When the bearing fails, the fix can cost $500,” Flint wrote.

Historic Grade II-listed TOWER in Northampton up for auction for £225k | Daily Mail Online

The Daily Mail 05 Apr 2025
Anyone buying a listed property needs to be aware of the potential challenges and additional costs involved ... Maintenance costs for listed properties can be high, particularly if specialist trades are required.

The 10 best skin problem solvers

The Times/The Sunday Times 05 Apr 2025
Puzzles. Challenge yourself with today’s puzzles. Crossword. Polygon. Sudoku ... The Inkey List Glycolic Acid Exfoliating Body Stick ... A quick-fix, superhydrating hand mask — akin to what you’d get in a spa, but for a fraction of the cost. This is infused with.

0.45x EV-to-EBITDA: this is the cheapest UK stock, IMO

The Motley Fool 05 Apr 2025
For example, higher costs for aircraft parts or maintenance services — some of which may be sourced internationally — could add to the carrier’s already mounting cost pressures.

3 Russell 2000 Stocks Walking a Fine Line

The Call 05 Apr 2025
Why Does PGNY Give Us Pause?Modest revenue base of $1.17 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Estimated sales growth of 3.9% for the next 12 ...

What Bjørn Lomborg Gets Wrong About ‘Green Innovation’

The Daily Sceptic 05 Apr 2025
Bjørn Lomborg is one of the world’s foremost contributors to policy debates on climate change ... How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet (2020) and Cool It (2010) ... You can donate here ... Tags ... Donate ... 13.

Net zero insulation plan won’t pay off for 100 years, Government admits

The Daily Telegraph 05 Apr 2025
“If it concentrates on just fixing our high energy costs, it will discover numerous ancillary benefits, including when it comes to decarbonisation.

Urgent Warning: JPMorgan Raises US Recession Risk to 60% – Crypto Market Impact

Bitcoin World 05 Apr 2025
The Federal Reserve’s aggressive rate hikes, aimed at taming inflation, are simultaneously cooling down economic activity and increasing borrowing costs ... Dollar-Cost Averaging (DCA).

Public hearings on Central Hudson rate hike request set for April 29, 30

Daily Freeman 05 Apr 2025
Central Hudson and state regulators announced a settlement on June 20, 2024, in which Central Hudson shareholders will pay up to $64.59 million for billing system fixes, monthly meter readings, costs ...
×