FIXED OVERHEAD Definition

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FIXED OVERHEAD is those costs like rent, utilities, basic telephone, loan payments, etc., that stay the same whether sales go up or down. Variable overhead, on the other hand, are those costs which vary directly with production.

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DRAWDOWN is the magnitude of a decline in account value, either in percentage or currency terms.

COMPOUND INTEREST is interest calculated from the total of original principal plus accrued interest.

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