Which of the following is considered a fixed cost?

A fixed cost is an expense that does not change regardless of the level of goods or services produced by a business. Fixed costs remain constant over a relevant range of production or activity levels. Interest payments fit this definition well; they are typically set amounts that must be paid regardless of how much a company produces or sells. This characteristic distinguishes fixed costs from variable costs, which fluctuate with production volume.

Raw materials for production are classified as variable costs since they change based on the production levels necessary to meet demand. Commissions are performance-based expenses tied to sales, representing another variable cost that increases as sales volume increases. Utility costs can also vary depending on usage, especially during high production periods when consumption increases. Therefore, interest payments are the only option that remains fixed regardless of changes in production activity levels.