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Typical examples of fixed costs are rent, wages of permanent employees, insurance, taxation and other expenses associated with the property, depreciation of tools, equipment etc. Such costs differ significantly from one industry to another because of the variance in operating needs and resource usage.

For instance, fixed costs for a manufacturing firm may include the cost of equipment and factory, whereas fixed costs for software firm are offices rent, salaries etc. Likewise, subjected to legal rules, such as in drugs or airlines, the fixed costs are high due to the additional necessary legal costs.

Hence recognizing fixed costs specific to the industry makes it easier for the company to plan and carry out comparisons with other players. Hence, if the fixed costs are compared with revenue then organizations can easily determine areas that are counterproductive and require a change in strategy to sustain a competitive edge.