Fixed Cost Definition | Becker
Accounting Dictionary
Fixed Cost
- Fixed costs are costs that remain constant in total over a relevant range of production activity (they may change from one relevant range to another). Fixed costs are fixed in total but variable on a per unit basis. See also variable costs and mixed costs and relevant range. A cost that does not vary with the volume of activity in the short term. (Also called nonvariable cost or constant cost.)
Related Terms:
Variable Costs [BAR]Mixed Costs [BAR]Relevant Range [BAR]Back to Dictionary