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Definition of Fixed Expenses
Cost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light.
expenses or costs that remain the same in amount,
The annual sales volume level at which total contribution
A relatively small percent increase or decrease in
the excess of revenues over direct variable expenses and avoidable fixed expenses for a particular segment
expenses that change with changes in either sales volume
expenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services.
The account that records the short-term, noninterest-
For investment companies, the management fee and "other expenses,"
The costs incurred in buying, making or producing goods and services.
Costs involved in running the company.
Annuity contracts in which the insurance company or issuing financial institution pays a
Long-lived property owned by a firm that is used by a firm in the production of its income.
An item with a longevity greater than one year, and which exceeds a company’s
The ratio of sales to fixed assets.
Things that the business owns and are part of the business infrastructure – fixed assets may be
An informal term that refers to the variety of long-term operating
Land, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation.
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
Fixed Charge Coverage Ratio
A measure of how well a company is able to meet its fixed
A cost that is fixed in total for a given period of time and for given production levels.
a cost that remains constant in total within a specified
A cost that does not vary in the short run, irrespective of changes in any
Costs that do not change with increases or decreases in the volume of goods or services
Costs that do not depend on the level of output.
In the Euromarket the standard periods for which Euros are traded (1 month out to a year out) are
Conventional bonds for which the coupon rate is set as a fixed percentage of the par value.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
A country's decision to tie the value of its currency to another country's currency, gold
Fixed Exchange Rate
An exchange rate held constant by a government promise to buy or sell dollars at the fixed rate on the foreign exchange market.
Also called a busted convertible, a convertible security that is trading like a straight
Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
The market for trading bonds and preferred stock.
A security that pays a specified cash flow over a
Fixed Interest Rate
A rate that does not fluctuate with general market conditions.
An inventory storage technique under which permanent
That portion of total overhead costs which remains constant in size
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
fixed overhead volume variance
see volume variance
Fixed price basis
An offering of securities at a fixed price.
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
A loan on which the rate paid by the borrower is fixed for the life of the loan.
Fixed Rate Loan
Loan for a fixed period of time with a fixed interest rate for the life of the loan.
In an interest rate swap the counterparty who pays a fixed rate, usually in exchange for a
What was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans.
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
Longer-Term Fixed Assets
Assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.
The total amount that was spent to run a company this year.
The amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates.
expenses that have been paid for but have not yet been used up; examples are prepaid insurance and prepaid rent.
Operating expenses that vary in proportion to
What was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising.
Costs that are constant within a defined level of activity but that can increase or decrease when
Tangible fixed assets
Physical assets that can be seen and touched, e.g. buildings, machinery, vehicles, computers etc.
expenses that vary in close proportion to changes
Those that vary with the amount of goods you produce or sell. These may include utility bills, labor, etc.
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
An intermediate measure of profit equal to sales revenue
A fixed rate paid to employees traveling on behalf of a business,
The profit per unit sold of a product after deducting product
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