Fixed Costs for Dummies
noun
What does Fixed Costs really mean?
Sure! So, fixed costs are like the bills that you have to pay every month no matter what. They're the same amount of money each time, and they don't change based on how much you use them. For example, think about your phone bill. Even if you use your phone a lot or a little, the bill is usually the same amount every month. The cost is fixed, or set, no matter what. Another example could be your rent or mortgage payment. It's the same amount of money every month, regardless of how much you use your home.
So, when we talk about fixed costs in business, we're talking about the expenses that a company has to pay regularly, like rent for their office space, insurance, or monthly loan payments. These costs don't change, even if the business isn't making as much money. It's kind of like having to pay for your phone or your house every month, no matter what.
So, think of fixed costs like your monthly bills that stay the same no matter what. They're the expenses that a company has to pay regularly, and they don't change even if the business isn't doing as well. They're like the foundation that the business has to build on, because they have to be paid no matter what. So, that's what fixed costs mean - important, unchanging expenses that a company has to pay regularly.
So, when we talk about fixed costs in business, we're talking about the expenses that a company has to pay regularly, like rent for their office space, insurance, or monthly loan payments. These costs don't change, even if the business isn't making as much money. It's kind of like having to pay for your phone or your house every month, no matter what.
So, think of fixed costs like your monthly bills that stay the same no matter what. They're the expenses that a company has to pay regularly, and they don't change even if the business isn't doing as well. They're like the foundation that the business has to build on, because they have to be paid no matter what. So, that's what fixed costs mean - important, unchanging expenses that a company has to pay regularly.
Revised and Fact checked by Nicole Thomas on 2023-11-15 14:18:12
Fixed Costs In a sentece
Learn how to use Fixed Costs inside a sentece
- Rent for a store that stays the same every month regardless of how much the store sells
- Insurance premiums that must be paid every month regardless of how much the business uses them
- Salaries for employees that are the same every month, regardless of how much work they do
- Loan payments that have to be made every month, regardless of how much the business makes
- Property taxes that are a set amount every year, regardless of how much the property is used
Fixed Costs Synonyms
Words that can be interchanged for the original word in the same context.
Fixed Costs Hypernyms
Words that are more generic than the original word.
Fixed Costs Hyponyms
Words that are more specific than the original word.