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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

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 ...

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 ...

Now, let’s focus on money going out, or total expenses. This step can often be more complicated because of how many different expenses we can have on a daily basis! To break it down into simpler bits, ...

Determining your fixed and variable expenses is paramount to effectively building a budget. But while accounting for necessary costs is a simple and straightforward task, including discretionary ...

Every business has fixed costs, which play roles in determining break-even points. Businesses also have variable costs, which make finding the actual break-even point more difficult than in ...

Fixed expenses are easier to plan around because they stay the same from one month to the next. Variable expenses, on the other hand, are less predictable. Understanding both types and how they impact ...

Companies today are responding to the shaky financial environment by reducing budgets and cutting costs. Meeting reduced budgets often requires reducing equipment and staffing. However, businesses ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...