Fixed cost

Fixed costs or indirect costs are expenses that do not change in direct proportion to the activity of a business.

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For example, a retailer must pay rent and utility bills irrespective of sales volumes. Fixed costs include, but are not limited to, overheads (rent, electricity, insurance, and such), payroll (particularly salaries), and promotion.

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In retail the variable costs are usually the cost of goods.

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A fixed cost is not always static, therefore in the long term one must introduce the concept of a 'stepped' fixed cost curve. A fixed cost is only valid within a relevant range. For example, a fixed cost is going to differ for a company based on whether it produces 500 units or 500,000,000 units, causing increased fixed costs: higher electricity, more insurance, etc. Using a fixed cost outside a relevant range leads to extrapolation.

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Along with variable costs, fixed costs make up one of the two components of total cost.

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Variable costs: REDIRECT Variable cost...

Total cost: In economics, the total cost describes the total economic cost of production and is made up of variable and fixed costs....

Fixed cost related Images and Photos (experimental)

Cost of Liberty	Love Don't Cost a Thing (DVD) (WS)	Loose Talk Can Cost Lives	Splasing Water Sea Cost
Malibu's Most Wanted/Love Don't Cost a Thing (DVD) (DBFE)	DotCom - Despite the cost of living, have you noticed how it remains so popular?	Country Bumpkins Compete for a Sucking Pig Fixed to the Top of a Greasy Pole	Beresford Defeats Soult at Albuera Though at the Cost of Half His Army