Fill in the Blank QuestionFill in the blank question.Preset costs for delivering a product or service under normal conditions are called costs.

Preset costs for delivering a product or service under normal conditions are called fixed costs.

Fixed costs are expenses that do not change with the level of goods or services produced by a business. These costs are incurred regularly regardless of the production output, making them a crucial aspect of financial planning and management. Examples of fixed costs include rent, salaries, and insurance. Understanding fixed costs is vital for businesses, as they help in setting pricing strategies, forecasting profits, and managing budgets. Unlike variable costs, which fluctuate with production levels, fixed costs remain constant, providing a clearer picture of a company's financial obligations and overall cost structure.