How would you define fixed costs in a project?

Fixed costs in a project refer to regular, unchanging expenses that do not fluctuate regardless of the project's progress or scale. These costs remain consistent throughout the duration of the project, allowing for predictable budgeting and financial management. Examples might include salaries for permanent staff, rent for office space, or monthly utility expenses.

By contrast, some expenses may vary with the scale of the project (like materials or contract labor), or could be one-time expenses incurred at the beginning (like equipment purchases). Therefore, understanding fixed costs is crucial for effective financial planning and ensuring that a project's budget reflects reliable expenses. Recognizing that these costs will not change helps project managers to maintain a stable economic outlook throughout the project's lifecycle.