Fixed Cost Law and Legal Definition
Fixed cost is an indirect cost that remains relatively constant irrespective of the level of operational activity. It does not vary in the short term as a function of changes in production volumes, distribution volumes, labor or machine hours. Fixed cost tends to be time-related, such as salaries or rents being paid per month. It is also known as overhead cost or simply overhead.
Legal Definition list
Related Legal Terms
- Above the Line Costs (Entertainment Law)
- Absorption Costing
- Accelerated Cost Recovery System
- Acquisition Cost of an Item of Purchased Equipment
- Acquisition Cost of Equipment [Education]
- Activity-Based Costing
- Actuarial Cost Assumptions
- Actuarial Cost Method
- Administrative Cost of Issuing a Loan Guarantee
- Administrative Settlement Costs
