Being able to determine the behavior of your business costs gives you a better chance to develop methods to control them. While learning these terms may take a little time, the added benefit of ...

You can categorize your business costs as fixed, variable and mixed based on how they change in response to your sales or production output. Fixed costs remain the same no matter how many units you ...

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 ...

A fixed cost is one that your business incurs whether or not it makes any sales. An example is rent: It has to be paid every month whether or not you're generating any income, and it's the same every ...

Cost structures (the ratio of fixed to variable costs) vary across and within industries. Hospital managers and policymakers can make better decisions when they under-stand cost structures, including ...

Budgets are important tools for helping companies analyze their costs and pinpoint ways to maximize their profits. Some companies follow static budgets, which remain constant regardless of sales ...

Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.

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 ...

Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also ...

A route selection algorithm is presented for designing transportation networks. The algorithm balances fixed construction costs and variable user costs in a network having a fixed set of nodes and a ...

Discover the difference between fixed and sunk costs. Learn why all sunk costs are fixed but not all fixed costs are sunk, ...