what can I say back to reply to my peer to add to the conversation? Fixed cost refers to the cost of using fixed inputs, which remains constant regardless of the quantity of output produced.(Reiter et al.,2018). Variable costs refer to costs that fluctuate with the output level, resulting from the use of variable inputs. (Reiter et al.,2018). Direct costs are unique expenses pertaining to a specific department, which would disappear if the department were to close. (Reiter et al.,2018). Indirect costs are expenses incurred from shared organizational resources, making them challenging to measure at the department level