Your housing expense ratio, which compares your housing costs to your gross monthly income, tells you what portion of your earnings goes toward housing expenses. Understanding this ratio can help you ...

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 ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Selling and administrative expenses include costs like marketing and rent, not tied to product production. Managers use these expenses to tailor company strategies and optimize operations. Frequent ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

Overhead costs are expenses tied to things other than the production of goods or services. Here's how to calculate overhead.

Compensation expenses include recruiting costs, salaries, payroll taxes, benefits and bonuses. This expense is usually a significant part of a company's operating costs, which means that it affects ...

Depreciation determines the loss of value of an asset over its useful life. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take ...

Interest expense, net income, and EBIT are three related financial metrics that all have to do with the profitability of a company. Here's what you need to know about calculating each one, and how ...

Generally accepted accounting principles dictate that rent expense should be shown on the financial statements of a business as a consistent amount from month to month. In accounting parlance, that's ...