Companies focus on their fixed costs to maximize profits at the end of the fiscal year. If a company's fixed costs are too high, the company might not create a profit for that fiscal period. Every business has operating expenses — that is, the costs of running the business.

Understanding the Context

These expenses can generally be classified in two ways: Fixed expenses and variable expenses. Understanding the ... Opinions expressed by Entrepreneur contributors are their own. A fixed cost is one that your business incurs whether or not it makes any sales.

Key Insights

An example is rent: It has to be paid every month ... FIXED definition: 1. arranged or decided already and not able to be changed: 2. A fixed idea is one that someone is…. Learn more.

Final Thoughts

FIXED definition: fastened, attached, or placed so as to be firm and not readily movable; firmly implanted; stationary; rigid. See examples of fixed used in a sentence. Define fixed. fixed synonyms, fixed pronunciation, fixed translation, English dictionary definition of fixed. adj. 1.

Firmly in position; stationary: a fixed dwelling. So many of a business’ costs fluctuate based on operations. For example, the more products you make, the more you’ll spend on materials to make them. However, there are several important costs that ...