The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest ...

Gain a comprehensive understanding of the marginal cost formula. Learn how to calculate it and explore its role in business decisions. The world of microeconomics and business decision-making hinges ...

A product's contribution margin tells you how much that product contributes toward paying your company's fixed costs -- and, once those costs have been covered, how much it contributes toward profit.

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Andy Smith is ...

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 ...

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 ...

Last month, we discussed various pricing methods, and how aggressive pricing models do not necessarily generate operating losses if one controls costs in sync with aggressive pricing to generate a ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

All products and services have certain inherent costs associated with them. You can determine the cost of materials per product by dividing the cost of the raw materials by the number of units ...