The amount of money many companies spend is in many ways directly proportionate to how much they produce. That is, there are a lot of variable costs that come with running a company. These costs are ...

A major part of budgeting is projecting fixed expenses versus variable expenses. The fixed ones are often much simpler to plan for because they will change less frequently and often the merchant ...

The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

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 ...

Being able to survive and thrive as a business owner has as much to do with managing costs as it does with generating revenue. Like the chief financial officer of any company, you have to be concerned ...

As you work to create a budget, it’s important to understand how fixed and variable expenses will impact your bottom line. David McMillin writes about credit cards, mortgages, banking, taxes and ...

Businesses use the high-low method of accounting when they want to accurately calculate the variable and fixed costs for a certain amount of sales. If a business finds that certain sales levels are ...

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 ...