What is the term for costs that remain constant regardless of production levels?

The term that refers to costs which remain constant regardless of production levels is fixed costs. Fixed costs are expenses that do not fluctuate with the volume of goods or services produced by a business. They are incurred even when production is zero, such as rent, salaries of permanent staff, and insurance.

In contrast, variable costs change in direct proportion to the level of production. As production increases, variable costs, such as raw materials and direct labor, will rise. Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another, rather than a specific type of cost. Direct costs are expenses that can be directly attributed to the production of specific goods or services, generally varying with production. Thus, fixed costs are distinct in their unwavering nature regardless of how much or how little is produced.