Costs of generation projects incurred regardless of the amount of energy produced Such costs normally include capital costs, the cost of financing construction (in the form of interest) and insurance
those costs that tend to remain unchanged even when the volume of sales or output changes Fixed costs can be expressed in algebraic form as Y = a
A cost that does not vary with usage or throughput of work Examples are a standard term maintenance contract for a server or a corporate software licence (within agreed User limits)
A cost incurred in the general operations of the business that is not directly attributable to the costs of producing goods and services These "Fixed" or "Indirect" costs of doing business will be incurred whether or not any sales are made during the period, thus the designation "Fixed", as opposed to "Variable"
A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense
- An indirect cost that remains relatively constant irrespective of the level of operational activity
Fixed costs are operating expenses that are incurred to provide facilities and organization which are kept in readiness to do business without regard to actual volumes of production and sales Fixed costs remain relatively constant until changed by managerial decision Within general limits they do not vary with business volume Examples of fixed costs consist of rent, property taxes, and interest expense Contrast with Variable cost
A cost or expense that does not vary in the short run with the quantity of output produced
Fixed costs are operating expenses that are incurred when providing necessities for doing business and have no relation to the volume of production and sales (as opposed to "variable costs") Examples are rent, property taxes, and interest expense