Fixed charges

Fixed charges,

Definition of Fixed charges:

  1. A liability to a creditor which relates to specific assets of a company.

  2. Overhead expenses such as rent, interest, and insurance which are related to the production capacity of a firm and not to its actual level of output. These charges may also include expenses fixed by agreements, such as pension fund contributions. See also fixed charge.

How to use Fixed charges in a sentence?

  1. The conceptual distinction between a floating charge and a fixed charge is complicated by the fact that a fixed charge may cover future assets and attach as soon as the debtor acquires those assets.

Meaning of Fixed charges & Fixed charges Definition