Fixed Costs can be thought of as any business expense that does not directly depend on the number of goods or services sold. These costs remain constant regardless of the volume of production, and are typically recurring expenses such as rent, insurance, maintenance, wages, and materials. Fixed Costs, unlike Variable Costs, do not fluctuate with the market or the cost of inflation; they will remain relatively constant over time. While these expenses may be unavoidable in order to keep a business running, understanding your Fixed Cost structure helps you create more accurate financial projections and make informed decisions about pursuing growth opportunities.