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

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 ...

You can categorize your business costs as fixed, variable and mixed based on how they change in response to your sales or production output. Fixed costs remain the same no matter how many units 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 ...

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 ...

As you work to create a budget, it’s important to understand how fixed and variable expenses will impact your bottom line. David McMillin writes about credit cards, mortgages, banking, taxes and ...

When creating a budget for your small business, you are attempting to plan how much money you’ll need to make in order to cover your costs — and then some. But how do you plan when some of your ...

Both in the mathematical sense and in the business world, an independent variable is one that stands alone and is not affected by outside forces. When it comes to evaluating cost in business, ...

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 ...