Fixed costs can often include:

Fixed costs are expenses that do not change in relation to the level of goods or services produced by a business. They remain constant regardless of the business's activity level. Rental payments for office space fit this definition perfectly, as they are generally agreed upon in a lease and remain the same over the lease term irrespective of how much business is conducted.

Material purchases for projects, on the other hand, fluctuate depending on the specific projects undertaken. Advertising expenses can vary widely depending on marketing strategies and campaigns and may not be incurred every month. Direct labor costs can also be variable, particularly if the workforce operates on an hourly or project basis rather than a fixed salary.

Understanding fixed costs is crucial for budgeting and financial planning within a business. They are often regarded as unavoidable expenses that need to be covered even when the business is not generating revenue, making it important for business managers to account for these costs accurately.