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 ...

In economics, fixed costs and variable costs are two separate components of total cost. Examining the two separately can be useful to demonstrate how much of a company's costs are tied to its level of ...

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 ...

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 ...

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 ...

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 ...

What is a fixed cost? A fixed cost is a business expense which does not vary with production volumes. Fixed costs often include rent, contractual agreements or licences that are needed for the ...

Revenue is any money that a business makes from selling its goods and services, whereas costs are anything that a business pays for. Businesses need revenue to ensure that they can maintain their ...

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 ...