In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or rents being paid per month.
What are examples of fixed expense?
Examples of Fixed Expenses
- Rent or mortgage payments.
- Renter's insurance or homeowner's insurance.
- Cell phone service.
- Internet service.
- Health, disability or life insurance premiums.
- Property taxes.
- Childcare expenses.
- Student loan or car loan payments.
What is considered a fixed expense?
Fixed expenses: These are costs that largely remain constant, such as your monthly rent. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.
