What do fixed costs include?

Fixed costs are expenses that do not fluctuate with the level of production or output. They remain constant regardless of how many units a company produces. Examples of fixed costs include rent, salaries of permanent staff, insurance, and equipment leases. These costs need to be paid even if the production is zero, making them an essential aspect of understanding a company's financial obligations and cost structure.

In contrast, the other options describe costs that either vary with production levels or are not consistently incurred, which makes them variable or unrelated to the concept of fixed costs. For instance, costs that change with production levels relate to variable costs, while costs that are only incurred during peak seasons pertain to seasonal fluctuations in expense. Additionally, costs associated with new investments imply a capital expenditure that does not operationally identify as fixed costs but rather involves decision-making about future financial commitments. Thus, recognizing fixed costs as constant expenses is crucial for financial analysis and planning in any business environment.