Final answer:
Fixed costs are consistent expenses like real estate taxes that remain the same regardless of production levels.Fixed costs remain constant, regardless of the amount of product or service being produced.
Step-by-step explanation:
Fixed costs include expenditures that do not change regardless of the level of production. This would apply to costs that are consistent regardless of how much a company produces, such as real estate taxes on a factory or retail space. Examples of fixed costs are rent, machinery, research and development, and advertising. These costs remain stable whether production is high or low. Therefore, out of the options, real estate taxes are considered fixed costs because they do not fluctuate with the quantity of production.
Fixed costs are expenditures that do not change regardless of the level of production. They include items such as rent on a factory or retail space, the cost of machinery or equipment, research and development costs, and advertising expenses. Fixed costs remain constant, regardless of the amount of product or service being produced.