What does Total Fixed Cost (TFC) mean？

Total Fixed Cost (TFC) refers to the sum of all the expenses that a business incurs, which do not vary with the level of production or sales. These costs remain constant regardless of the quantity of goods or services produced or sold. Examples of fixed costs include rent, salaries, insurance, property taxes, and depreciation. TFC is an essential element in determining a company's break-even point, which is the level of sales required to cover all the fixed and variable costs.