Fixed costs are generally affected by the amount of ﬁxed assets owned by a ﬁrm.

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Fixed costs are those expenses that do not vary with changes in production or sales volume, such as rent, insurance, and property taxes. These costs are typically related to the ownership of fixed assets, such as buildings, equipment, and vehicles, which require ongoing maintenance and upkeep regardless of how much they are used. Therefore, the amount of fixed assets owned by a firm generally has a direct impact on its fixed costs.

Fixed Costs Are Generally Affected by the Amount of ﬁXed