Fixed Costs
Costs you must pay whether your business is doing well or not. Expenses such as utilities, rent, and employee salaries are considered fixed costs. https://getsling.com/blog/business-terms/
Refer to the expenses that a company incurs regardless of its level of production or sales. These costs are considered fixed because they do not vary with changes in output, such as rent, property taxes, salaries, and insurance premiums. Fixed costs are important for businesses to consider when calculating their breakeven point, which is the level of sales or revenue necessary to cover all of the company’s fixed and variable costs. Managing fixed costs efficiently is an important part of financial planning and can impact a company’s profitability and ability to compete in the market.
An example of fixed costs in business coaching could be the monthly rent paid for the office space where coaching sessions are conducted. Regardless of the number of clients a coach has or the number of sessions held each month, the rent remains the same. Other fixed costs in coaching may include the cost of maintaining a website, subscriptions to coaching industry publications, and licensing fees for coaching software. Understanding fixed costs is important for coaches to manage their expenses and maintain profitability.
Fixed Costs DEFINITION:
Fixed Costs QUOTE:
1.Expenses that remain constant regardless of the level of production or sales, such as rent or salaries. 2.Expenses that do not vary with the quantity of goods or services produced or sold.