Fixed Cost

Definitions

1. A cost that does not change directly with short-term sales or usage volume, such as rent, salaries, or long-term software commitments. Fixed costs shape how much scale a business needs before margins improve.

   In plain English: A cost that stays roughly the same even if sales volume changes.

   Example: "The factory lease was a fixed cost whether they sold a hundred units or ten thousand."

Related Terms

• Cost Center
• Extended Runway
• Fee Structure
• Fintech
• Forecasting
• Franchise Model
• G&A
• Maturity Stage
• Metrics Dashboard
• Asset-Light
• Billing Cycle
• Break-Even
• Burn Down
• Business Unit
• Cash Flow
• Profitability
• Public Company
• Purchase Order
• Service Model
• Supply Side
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• Underfunded
• Value Chain
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• Virtual CFO