Which of the following is considered a fixed cost for a small insurance office?

A fixed cost is an expense that does not change with the level of goods or services produced by a business. It remains constant regardless of the business activity within a certain range. In the context of a small insurance office, the property lease for the office is considered a fixed cost. This expense is incurred regularly and generally remains the same over the lease term regardless of the office's sales volume or the number of clients served.

On the other hand, office supplies and utilities can fluctuate based on the specific usage or needs of the business each month. For example, office supplies may vary depending on the workload or projects, while utility expenses can change with usage levels. Commission payments are also variable costs that depend on sales performance and the specific commissions tied to sales results, therefore they fluctuate with business activity. These distinctions are crucial for understanding cost structures within business operations.