A business's fixed costs include which of the following?

Fixed costs are expenses that do not change with the level of production or sales within a certain period. They remain constant regardless of how much or how little a business produces or sells. Insurance premiums are a perfect example of a fixed cost because they are set amounts the business must pay, typically monthly or annually, regardless of its production levels.

In contrast, production materials are variable costs, as they fluctuate based on the volume of goods produced. If production increases, the costs for materials would also rise to accommodate the greater output. Similarly, commission fees for sales personnel vary depending on the sales made, which categorizes them as variable costs as well. Labor wages can be fixed or variable; they might be fixed if they are salaries paid irrespective of hours worked, but they can also be variable if they are structured around hours worked or production levels, such as with hourly workers.

Therefore, insurance premiums represent a stable and predictable expense, making them an essential example of fixed costs within the context of a business's financial structure.