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English definition of “fixed cost”

fixed cost

noun [C, usually plural]
 
 
( also fixed expense, standby cost)
ACCOUNTING a cost such as wages, rent, and interest that does not change in relation to how much a business produces: When you take 2,000 people out of your business you will inevitably have fixed cost reductions.
(Definition of fixed cost from the Cambridge Business English Dictionary © Cambridge University Press)
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