Final answer:
The costs of running a business are called operating expenses, which include both fixed and variable costs, such as rent and equipment, or materials and wages, respectively.
Step-by-step explanation:
The costs of running a business are called operating expenses. These are distinct from startup costs, cash flow, and fixed costs, although operating expenses may include both fixed and variable costs. Fixed costs are expenses that do not change with the level of production. Examples of fixed costs include rent for a factory or retail space, machinery or equipment costs, research and development expenses, and certain marketing costs like advertising.
Variable costs, on the other hand, fluctuate with production levels like costs for raw materials or hourly wages. Understanding how both fixed and variable costs contribute to operating expenses is crucial for business financial management.