Fixed Operating Cost refers to the unavoidable business expenses that a company must bear regardless of their level of activity or sales. These costs include things like rent, insurance charges, loan payments, taxes and more. They are essential for the success of any organization and should be carefully managed to ensure profits. The key to staying in the green is careful management of fixed operating costs to ensure they don’t exceed your income. By keeping these costs at a reasonable amount, you can maximize profitability and stay ahead of the competition.