In 100 words or more reply to statement below about cost of running a practice.

• there are costs that are incurred regardless of how well a company is doing. If a business has no profit, the rent or building still has to be paid for. The variable cost can change depending on how well the business is doing. For instance, if the business is doing well and the products are selling fast, the company has to increase their products. Therefore the cost has to increase, similar to supply and demand. The same is true if a product is not producing a profit, a business can determine if the expenses to produce that product can be eliminated.