What term describes costs that remain constant regardless of the level of output?

The term that describes costs that remain constant regardless of the level of output is fixed costs. Fixed costs are expenses that do not change in total with the level of production or sales, meaning they remain stable even if production increases or decreases. Common examples of fixed costs include rent, salaries, and insurance, which need to be paid regularly regardless of how much or how little is produced.

In contrast, variable costs fluctuate with production levels; they increase as production rises and decrease when production falls. Marginal costs refer to the additional cost incurred from producing one more unit of a good or service and are directly tied to variable costs. Direct costs are expenses that can be directly attributed to a specific cost object such as a product or project, but they can include both fixed and variable components. Therefore, the correct answer highlights the distinction of fixed costs as those that remain unchanged at different production levels.