Fixed Cost
/ˈfɪkst kɒst/
Definitions
- (n.) A cost that remains constant and does not vary with the level of goods or services produced, often relevant in contracts and liability assessments.
The contract specified that the tenant must pay a fixed cost regardless of utility use.
Forms
- fixed cost
- fixed costs
Related terms
See also
Commentary
In legal contexts, fixed costs may impact contract terms and damage calculations, so precise drafting should clarify which costs are fixed versus variable.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.