Which type of cost typically remains constant regardless of production levels?

Fixed costs are characterized by their stability, remaining constant in total regardless of variations in production levels within a relevant range. This means that whether a company produces a high volume of products or none at all, fixed costs—such as rent, salaries of permanent staff, and insurance—do not change.

In contrast, variable costs fluctuate proportionately with production levels. As production increases, variable costs rise; conversely, they decrease when production levels drop. Semi-variable costs, also known as mixed costs, have both fixed and variable components, meaning they can change with production, but they include a base amount that remains constant overall. Stepped costs remain fixed over certain production levels but will increase in steps once production exceeds certain thresholds.

Thus, fixed costs uniquely represent those costs that stay constant despite changes in activity levels, reinforcing the rationale behind selecting this option as the correct answer.