A periodic cost that remains more or less the same regardless of the level of production or sales revenue, such as depreciation, insurance, interest, rent, and wages.
While all costs vary over time and none remain purely fixed, the concept of fixed costs is necessary in short-term cost accounting.
These costs are not sensitive to small changes in the company's activity; they remain unchanged in the face of such changes. Operating leverage is based on transferring variable costs to fixed costs.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.