Which of the following describes Fixed Costs?

Fixed costs are defined as expenses that do not fluctuate with the volume of sales or production. These costs remain constant over a specified period, regardless of how much product or service is sold. Common examples of fixed costs include rent, salaries of permanent staff, and insurance. These expenses are essential for the operation of a business and must be paid regardless of activity levels, which allows businesses to operate consistently even when sales vary.

The other options describe variable costs or factors that influence costs in relation to sales, making them incorrect in the context of defining fixed costs. Understanding the distinction between fixed and variable costs is crucial for business planning and financial analysis, as it impacts budgeting, financial forecasting, and overall business strategy.