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Dictionary by pitch.dog
Margins, break-even & unit economics · Core

Fixed cost

Also called: committed cost

ELI5

A cost that does not change directly with activity volume within a relevant range.

Used in conversation

“The number is useful only if everyone calculates fixed cost the same way.”

Pitch context

You will see “Fixed cost” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.