Final answer:
Rent, electricity, and executive salaries are fixed costs because they remain constant regardless of production levels.
Step-by-step explanation:
Rent, electricity, and executive salaries are examples of fixed costs. Fixed costs are expenses that do not change regardless of the level of production. These costs are incurred on a regular basis, like monthly rent, and don't fluctuate with the volume of production. For instance, the rent on a retail space remains constant whether the business has high or low sales in a given month. Similarly, executive salaries are typically consistent, regardless of company performance in the short term, and electricity costs for a corporate office might also be considered fixed if they're not significantly influenced by production levels.
In contrast, variable costs change with production volume. For example, costs for raw materials would rise as more products are made. Understanding these distinctions is crucial for businesses as they plan their budget and forecast their expenses.