Fxied costs
2
I was surprised to learn that many people, including various authors on product management and product analytics, still misunderstand the essence of the term "fixed costs."
It’s often said that these are costs that don’t change over time. However, this is not true at all, and the main issue is that the word "fixed" refers not to the amount of the costs, but to time.
Fixed costs are those costs that exist at any moment in time in a business, such as rent, salaries, and so on. Their amount can easily change, including depending on the number of transactions in the business. It’s important to understand that the main characteristic of fixed costs is that they exist even when you have no transactions at all.
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