An example of a fixed cost is:

Understand the Problem

The question is asking for an example of a fixed cost. Fixed costs are business costs that remain constant regardless of the level of production or sales. The options provided include various costs, and the goal is to identify which one qualifies as a fixed cost.

More Information

Fixed costs are expenses that remain constant regardless of the level of production or sales, such as rent, which is paid regularly and typically doesn't change based on business activity.

Tips

Avoid confusing fixed costs with variable costs, which change with the level of production.

Sources

• The web page with info on - Example Source - scu.edu
• Fixed Cost: What It Is and How It's Used in Business - Investopedia - investopedia.com
• Examples of fixed costs - AccountingTools - accountingtools.com