Which of the following best describes fixed costs in relation to variable costs?

Fixed costs are expenses that do not change regardless of how much a business produces or sells. This means that even if a company makes no sales at all, it still has to pay these costs, like rent for its building or salaries for employees. On the other hand, variable costs change depending on the level of production; for example, if a bakery makes more cakes, it will need to buy more flour and sugar. Understanding the difference between fixed and variable costs is important because it helps businesses decide how to price their products and manage their budgets effectively. For instance, if a small bakery has high fixed costs but low variable costs, it needs to sell a certain number of cakes each month just to cover those fixed expenses.