What is faste omkostninger (fixed costs)?

In short

Faste omkostninger are costs that do not vary with activity — rent, insurance, subscriptions, fixed salaries. They must be paid no matter how much you sell.

In practice

Fixed costs determine the minimum contribution margin the business must earn to break even. Low fixed costs make a business more flexible in bad times.

Related terms

• Variable omkostninger (variable costs)
• Dækningsbidrag (contribution margin)
• Driftsomkostninger (operating costs)
• See every term in the dictionary

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