Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Discover the key differences between fixed and variable overhead costs and their impact on business operations. Learn how to ...

There are many inputs related to the production of goods and services, not to mention the associated production costs. These expenses can be divided into different categories. Direct costs and ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Fixed costs remain unchanged when you increase or decrease your sales or production volume. Variable costs change with changes in the volume of production activities. Profit maximization involves ...

Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Every business has operating expenses — that is, the costs of running the business. These expenses can generally be classified in two ways: Fixed expenses and variable expenses. Understanding the ...

Budgeting, quite simply, is the act of spending your money efficiently. The importance of budgeting cannot be overemphasized, and whether you’re looking at your individual finances or running a ...

In these challenging economic times, business executives are increasingly focused on converting as many costs as is feasible from fixed to variable. IT leaders will gain credibility by becoming ...

Related Terms:Accounting; Bookkeeping; Cost-Benefit Analysis; Economies of Scale Business expenses are categorized in two ways: fixed expenses and variable expenses. Fixed expenses or costs are those ...

When creating a budget for your small business, you are attempting to plan how much money you’ll need to make in order to cover your costs — and then some. But how do you plan when some of your ...