Fixed Cost

A cost that remains constant, regardless of any change in a company's activity.


A good example is a lease payment. If you are leasing a building at $2,000 per month, then you will pay that amount each month, no matter how well or how poorly the business is doing.



What Is A Cash Flow Statement? - Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.

Reading The Balance Sheet - Learn about the components of the statement of financial position and how they relate to each other.

Introduction to Fundamental Analysis - Here's an easy-to-understand tutorial on the techniques of analyzing a company's financial statements, including the annual and quarterly reports, the auditor's report, and much more.

Advanced Financial Statement Analysis - Learn what it means to do your homework before investing in a company. Get a deeper understanding of the structure of financial statements and what they tell you about a company's performance and reporting practices.
Related Terms

Operating Expense

Operating Margin

Outlay Cost

Semi-Variable Cost

Sunk Cost

Variable Cost

Word Search:

Categories