Which of the following is NOT considered a fixed cost?

In the context of business costs, fixed costs are expenses that do not change in relation to the level of goods or services produced. They remain constant over time, regardless of the business's activity level.

Materials used in production are variable costs, meaning they fluctuate depending on the quantity of goods produced. For example, if a company increases production, it will need to purchase more materials, whereas if production decreases, fewer materials will be required. This direct correlation between production volume and material costs distinguishes them from fixed costs.

In contrast, rent for office space, insurance premiums, and the salaries of permanent staff are considered fixed costs. They remain stable regardless of whether the company produces a high or low volume of goods. For instance, rent is paid monthly and does not vary with production levels, nor do insurance premiums typically fluctuate based on operational scale. Permanent staff salaries are also constant, as they are not dependent on the number of products manufactured.