Fees and charges serve several important purposes in a business:
Revenue Generation: They are a source of income, helping businesses cover their operational costs and make a profit. Cost Recovery: They help businesses recover the costs associated with providing a service or product, such as labor, materials, and overhead. Behavioral Incentives: Fees can discourage undesirable behaviors, such as late payments or frequent cancellations. Value Perception: Charging fees can enhance the perceived value of a service or product, signaling quality and exclusivity.