That is the part that is just as important to every business as the demand for the products they produce. These administrative costs include worker benefits, taxes, insurance, worker morale, and the all important Reputation. The game models all these factors in a fairly similar fashion. Workers benefits include things such as paid vacations, sick leave, work-things compensation, etc. Insurance includes such things as fire damage insurance, earthquake damage insurance and general liability.
Taxes increase each time the player adds to their factory, their storage space, the workforce, etc.
It is always increasing throughout the game. The variables that can go up or down are the worker morale and the reputation. Worker morale is affected by the decisions you make about workers benefits, insurance, and who you deal with on a regular basis. Reputation is also affected by who you hang out with, what your company has done for the community lately, and how you treat your workers. Lower worker morale usually leads to lower reputation.