Which of the following is an example of a fixed cost for a business?

A fixed cost for a business is an expense that remains constant regardless of the level of goods or services produced. Salaries of permanent staff are considered fixed costs because they do not change with the volume of production or sales. This means that even if the business has a slow month with lower sales, the salaries must still be paid.

In contrast, other costs, such as sales commissions, utilities, and delivery expenses, can fluctuate based on business activity. For example, sales commissions vary with sales volume, utilities might change based on usage, and delivery expenses can differ depending on the amount of product shipped. Understanding fixed costs is crucial for budgeting and financial planning, as they impact a company's overall profitability.