Meaning of the word "fixed cost" in English

What does "fixed cost" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

fixed cost

US /fɪkst kɔst/
UK /fɪkst kɒst/

Noun

a cost that does not change with an increase or decrease in the amount of goods or services produced

Example:
Rent is a typical example of a fixed cost for a business.
To reduce overall expenses, they need to cut down on their fixed costs.