Fixed costs are typically:

Fixed costs are expenses that do not change in relation to the level of activity or sales volume within a certain range of production or revenue. They remain stable across various levels of output, which means that, regardless of how much product is sold or how many services are provided, these costs remain constant within a specified range. This stability helps businesses in budgeting and forecasting since fixed costs provide a predictable expense that must be covered regardless of sales performance.

Understanding fixed costs is crucial for operational planning and financial management, as they can include expenses such as rent, salaries, and insurance that typically do not fluctuate with production levels. This characteristic allows businesses to manage their resources more effectively during periods of varying sales levels, facilitating strategic decision-making and long-term planning.