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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 ...

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 ...

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 ...

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 ...

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, ...

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 ...

Fixed expenses are easier to plan around because they stay the same from one month to the next. Variable expenses, on the other hand, are less predictable. Understanding both types and how they impact ...

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 ...

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 ...