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

Businesses face two basic types of costs: fixed costs and variable costs. While variable costs change depending on things like sales volumes, fixed costs tend to stay the same regardless of how much ...

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 ...

In a business, there are two types of costs: fixed and variable. It’s important to understand the difference between these two types of costs, which costs fit into each category, and how to account ...

A major part of budgeting is projecting fixed expenses versus variable expenses. The fixed ones are often much simpler to plan for because they will change less frequently and often the merchant ...

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 ...

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 ...

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 ...

In traditional cost accounting for manufacturing, categorizing costs as fixed or variable has been part of accepted practice for a long time. In recent years, the practice has diminished because this ...

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 ...

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 ...

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 ...