Several factors can cause fluctuating costs to vary:
1. Market Demand: Higher demand for products or services can increase costs due to the need for more raw materials and labor. 2. Supply Chain Issues: Disruptions in the supply chain can lead to increased costs for materials and transportation. 3. Economic Conditions: Inflation, changes in interest rates, and currency fluctuations can impact costs. 4. Regulatory Changes: New regulations can require businesses to alter their processes, often leading to increased costs. 5. Technological Advancements: Investments in new technology can lead to initial high costs but may reduce costs in the long term.