Learn how to distinguish marginal costs by exploring their relationship with fixed and variable costs in production.

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 ...

The fundamental financial concept behind unit cost is simple. A business takes all costs and expenditures that it needs to produce a quantity of goods or services, and then divides these amounts by ...

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 ...

Break-even analysis is the study of the amount of sales or units sold that are required to break even after incorporating all fixed and variable costs of running the operations of a business.