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Sagot :
A cost that remains unchanged in total over a wide range of activity, but jumps in total when the range limit is reached is a fixed cost.
Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces. They frequently occur again and again, like monthly rent or interest payments. They frequently also count as capital expenses.
When a cost is referred to as fixed, it means that it doesn't fluctuate based on how many products or services are produced or sold. Costs associated with a company's operations that must be covered regardless of the company's specific operations are known as fixed costs.
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