business costs

Business costs are the expenses a company incurs to operate and deliver its products or services. These include things like paying employees, buying materials, rent, utilities, marketing, and equipment. Costs can be fixed (unchanging, like rent) or variable (varying with sales or production, like raw materials). Managing costs is crucial for profitability, as they directly impact how much money a business makes after expenses. Understanding and controlling costs helps a business set appropriate prices, make strategic decisions, and ensure long-term sustainability.