fixed cost

USAGE SUMMARY

"fixed cost" is a correct and usable phrase in written English.
You can use it to refer to a cost that does not change, regardless of how much of a good or service is being purchased. For example, "The company's fixed cost for rent each month is $2,000."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

46 human-written examples

Each set is assumed to have a fixed cost.

Theoretical Computer Science

If the program were in effect now, that fixed cost would be $17.50 a month.

The New York Times

C = fixed cost.

Journal of Industrial Engineering International

Because each distribution center is a relatively low fixed cost.

TechCrunch

Initial Investment (fixed cost and grants received).

Visualization in Engineering

Only external vehicles have fixed cost for starting their routes.

Journal of Industrial Engineering International

Human-verified similar examples from authoritative sources

Similar Expressions

11 human-written examples

"Whenever you have a heavy fixed-cost, capital intensive industry, you never have tons of players.

The New York Times

Maybe we will be able to do some fixed-cost increases then".

The Guardian - Business

Fixed-cost underwriting by micro-finance institutions.

Journal of Global Entrepreneurship Research

Understand the dynamics of a high fixed cost/low variable cost industry.

Harvard Business Review

"It is a fixed-cost business".

The New York Times

Expert writing Tips

Best practice

When discussing business finances, clearly differentiate between "fixed costs" and variable costs to provide a comprehensive understanding of expenditure drivers.

Common error

Avoid assuming that all costs are "fixed". Variable costs, which fluctuate with production levels, need separate consideration for accurate financial analysis.

Linguistic Context

The phrase "fixed cost" functions as a noun phrase, typically used as a subject, object, or complement in a sentence. It refers to a cost that does not change with the level of production or sales. Ludwig AI confirms that this is a correct and usable phrase.

Expression frequency: Common

Frequent in

Science

38%

News & Media

34%

Formal & Business

14%

Less common in

Academia

7%

Encyclopedias

2%

Wiki

5%

Ludwig's WRAP-UP

The phrase "fixed cost" is a common and grammatically correct term used to describe business expenses that do not vary with production levels. As Ludwig AI explains, it is a useful concept in finance and economics. While "fixed cost" is most frequently encountered in scientific, news, and business contexts, it's important to distinguish it from variable costs for accurate financial analysis. Related terms like "overhead expense" or "non-variable expense" can be used as alternatives depending on the specific context. Understanding the dynamics of "fixed cost" is crucial for effective business management and financial planning.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

non-variable expense

This alternative directly contrasts with variable costs, emphasizing the lack of dependence on production volume.

overhead expense

This alternative focuses on the ongoing operational expenses that don't directly correlate with production levels.

constant outlay

This term suggests a consistent and predictable expenditure over a period of time.

capital expenditure

This term emphasizes the initial investment required, particularly for assets like equipment or property.

recurring charge

This phrase indicates a regular and repeated cost, such as rent or subscription fees.

initial investment

This phrase highlights the upfront costs necessary to begin a project or venture.

baseline expenditure

This refers to the minimum level of spending required, irrespective of output.

sunk cost

This refers to a cost that has already been incurred and cannot be recovered.

infrastructure cost

This term highlights costs related to the basic framework or systems needed for operation.

lump-sum payment

This denotes a single, one-time payment that covers a fixed expense.

FAQs

How do I use "fixed cost" in a sentence?

You can use "fixed cost" to describe expenses that remain constant regardless of production volume, such as "Rent is a significant fixed cost for the company".

What are some alternatives to saying "fixed cost"?

You can use alternatives like "overhead expense", "non-variable expense", or "recurring charge" depending on the context.

What's the difference between "fixed cost" and "variable cost"?

"Fixed costs" remain constant regardless of production, while variable costs fluctuate with the volume of production. For example, rent is a "fixed cost", while raw materials are a variable cost.

Is salary a "fixed cost"?

Salaries are typically considered a "fixed cost" as they are paid regardless of the production level. However, this may vary depending on the specific employment agreement.