Cielo T.

Cagaitan
1. The costs involved in making a product or providing services can be fixed costs and
variable costs.
2. Yes, because decreasing production volume typically reduces variable costs and,
consequently, the total cost to some extent. However, fixed costs remain unchanged in
the short term.
3. Automation can reduce labor costs, it may increase operating and maintenance costs
related to the upkeep of automated systems. Businesses need to account for ongoing
maintenance, repairs, and potential upgrades to keep automated systems running
efficiently. Skilled technicians or engineers may be required for maintenance,
contributing to operating costs.
4. Cost control is an important aspect of building a business's finances and helping
increase its profitability. In order to control this we have to plan the budget properly most
businesses use when starting a new project is budget management. Setting aside
enough time to develop an accurate budget for new projects is important because
budgeting helps estimate costs, keep finances organized and ensure the cost variance
is relatively low. Also having time management is a cost control that can keep the
expenses of a project down by meeting project deadlines. When a project goes beyond
the deadline, it can cause the cost of the overall project's expenses to rise, since they
continue using materials and employees to complete the project, which lowers the
project's profitability.