There are two types of costs that businesses should note: fixed and variable. A fixed cost is the same regardless of how much a company produces or sells. A variable cost changes based on the amount produced. An example of a fixed cost would be rent. You have to pay the same rent each month regardless of how much product you make or sell. A variable cost could be labor. For hourly workers, you might have a few workers that only come in during busier times of the year. Thus, labor costs would fluctuate based on your need.
Nickolas, Steven. “Variable Cost vs. Fixed Cost: What's the Difference?”
Investopedia, January 12, 2022. https://www.investopedia.com/ask/answers/032515/what-difference-between-variable-cost-and-fixed-cost-economics.asp