Fixed Cost Definition:

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.

Back to Managerial Accounting Terms Main Page

No text of this website can be republished without permission of the owner of this site and the authors of these managerial, management, and cost accounting articles. Otherwise sever civil and criminal penalties shall be imposed. All rights reserved.
Copy right © 2009