Costs are also in the eye of the beholder. For example, to Marriott International, each hotel is a variable cost as it can be open or closed and few costs are fixed. To the manager of each hotel, most costs, though, are fixed with the only variable/controllable costs being related to guest services, food, and housekeeping. The change in perspective can change how we look at costs. Management as well as maintenance is viewed as a fixed cost from this perspective.

Should internal and external numbers be looked at the same by managers?