A cost contract is a type of employment contract in which the employee agrees to be paid a fixed wage for each day worked. This means that if the employee works more or fewer hours than expected, the cost remains the same. Cost contracts are typically used when there is an expectation that employees will work fixed hours or days and their productivity is known in advance. With cost contracts, employers have greater control over labor costs since they can accurately plan and budget for their employee costs. They also have greater flexibility when it comes to hiring new employees or adjusting current employee schedules. At the same time, cost contracts provide workers with stable wages and predictability. In sum, cost contracts are a beneficial option for both employers and employees–they lower risk while ensuring security and stability.