FIXED COSTS Definition

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FIXED COSTS are operating expenses that are incurred to provide facilities and organization that are kept in readiness to do business without regard to actual volumes of production and sales. Fixed costs remain relatively constant until changed by managerial decision. Within general limits they do not vary with business volume. Examples of fixed costs consist of rent, property taxes, and interest expense.

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DETECTIVE CONTROL is a control designed to discover an unintended event or result.

TIGHT MARKET is a market in which the spread, or dif­ference, between the bid and asked price of a security is extremely small. It is usually an indication that there is an abundant supply of the security and it is being actively traded. See THIN MARKET.

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