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 ...

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 ...

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 ...

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 ...

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, ...

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 ...

So many of a business’ costs fluctuate based on operations. For example, the more products you make, the more you’ll spend on materials to make them. However, there are several important costs that ...

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 ...

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 ...

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 ...