Which of the following is NOT considered a variable cost?

Variable costs are expenses that change in proportion to production levels. These costs increase as production increases and decrease as production decreases.

In this context, rent payments are classified as fixed costs rather than variable costs. Fixed costs remain constant regardless of the level of production within a certain range. This means that whether a company produces a lot or a little, the rent it pays for its facilities does not change.

On the other hand, raw materials costs, utility costs, and direct labor costs typically fluctuate with production volume. For example, as production rises, a company will need more raw materials and may incur higher utility costs associated with increased operations. Similarly, direct labor costs can vary if more workers are hired or existing workers are paid overtime for increased production. Therefore, rent payments distinctly stand out as not being a variable cost.