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fixed cost
This term is primarily used in accounting and economics to describe expenses that do not fluctuate with production levels. It carries a neutral, technical tone and is standard in business reports, financial analysis, and academic textbooks.
In practical application, it is often contrasted with variable costs. While a fixed cost is predictable and stable over a specific period, it represents a financial risk for a company because these obligations must be met even if sales drop to zero.
Ý nghĩa
Ví dụ
Our monthly rent is a significant fixed cost that we cannot avoid.
We need to reduce our fixed cost to survive this downturn.
How can we cover the fixed cost if sales continue to drop?
The company has a high fixed cost due to its massive factory lease.
I wonder if switching to a remote model would lower our fixed cost.
The accountant is calculating the total fixed cost for the next fiscal year.
A low fixed cost allows a startup to be more flexible in a volatile market.
Insurance premiums are considered a typical fixed cost in this industry.