Fixed Cost: What It Is & How to Calculate It

fixed cost A fixed cost is a cost that does not vary depending on the number of goods or services produced or sold

Average fixed cost is the fixed cost per unit of output As the total number of units of the good produced increases, the average fixed cost decreases because fixed cost Costs As we noted earlier, the short- run cost is an operating concept, which means that an organization has no control over the fixed costs it incurs for a