Several factors can lead to changes in business costs. These include:
Market Dynamics: Shifts in supply and demand, new competitors, and changes in consumer preferences can all impact costs. Economic Conditions: Inflation, interest rates, and economic cycles can cause fluctuations in costs. Technological Advancements: New technologies can either increase costs due to initial investments or decrease them by improving efficiency. Regulatory Changes: New laws and regulations can impose additional costs or provide opportunities for cost savings.