Fixed cost is a cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period. A factor affecting business risk is the firm’s fixed costs. Fixed costs, such as rent, lease payments, and depreciation, remain the same whether the firm’s sales, production, or profitability levels rise or fall. The effect of fixed costs on the firm’s operating structure is to magnify, or leverage, the impact of a change in sales on EBIT.