TeachMeFinance.com - explain Fixed Charges
Fixed Charges -- 1. Charges which do not increase or decrease with a change in volume.
2. Expenses that have to be borne whether any business is done or not.
Fixed charge -- A charge that becomes due at stated intervals.
In the case of a railroad fixed charges include interest on
funded debt, interest on floating debt, rentals, taxes and requirements
of sinking funds. Failure to pay these charges
constitutes a legal default.
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