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 ...

In a business, all costs not directly related to the production and sale of products and services that create revenues for the business are called overhead costs. Overhead may be fixed or variable in ...

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 ...

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 ...

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 ...

The amount of money many companies spend is in many ways directly proportionate to how much they produce. That is, there are a lot of variable costs that come with running a company. These costs are ...

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, ...

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 ...

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 ...

As long as I've been covering the airline industry starting back in 1990, airlines have always been thought of as largely fixed-cost companies. They had so much invested in equipment, facilities and ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...