Fixed Cost: Definition, Formula, and Examples

fixed cost A fixed cost stays the same regardless of how active your business is The term is often used interchangeably with 'overheads', but these are not the same

A fixed cost is a business expense that remains unchanged, no matter how much a company grows its revenue or produces Some examples of fixed variable cost The fixed cost per unit is the total amount of FCs incurred by a company divided by the total number of units produced Fixed Cost Per Unit =