Identifying Fixed Costs

In microeconomics, understanding the cost of production is crucial for analyzing a firm’s profitability and decision-making. Costs of production can be categorized into fixed and variable costs. Fixed costs do not change with the level of output, while variable costs fluctuate with production levels. A new business owner is evaluating the costs involved in starting a bakery.

If the bakery incurs costs for equipment and rent that do not change regardless of how many cakes are produced in a month, which type of cost are these expenses classified as?