Which of the following best describes fixed costs?

Fixed costs are best defined as expenses that do not change with the level of goods or services produced by a business. These costs remain constant regardless of the production volume, meaning they will be incurred whether a company produces one unit or thousands of units. Common examples of fixed costs include rent, salaries of permanent staff, and insurance, which do not fluctuate with the company's production activities.

In contrast, costs that vary with production levels (as mentioned in the first option) are considered variable costs, which change depending on the amount of goods produced. Seasonal sales can affect certain costs, but this is not indicative of fixed costs; therefore, the second option does not accurately describe fixed costs. The last option refers to calculating costs on a per-unit basis, which can apply to both fixed and variable costs, but does not specifically define fixed costs themselves. Understanding fixed costs is crucial in financial analysis and budgeting, as they impact overall profitability and cash flow management.