Which of the following is an example of fixed costs?

Fixed costs are expenses that do not change with the level of production or sales volume. They remain constant regardless of how much is produced or sold up to a certain level of output. Rent payments exemplify fixed costs because they are typically set amounts that a business must pay regularly, regardless of its productivity or revenue. This consistency means that even if a company produces zero units in a given period, it still incurs the same rent expense.

In contrast, raw materials and production supplies are variable costs; they fluctuate based on production levels. Direct labor costs can also vary depending on how much is produced, as more production often necessitates more labor. Therefore, rent payments stand out as a clear example of fixed costs, as they offer a predictable and stable expense for businesses irrespective of their output.