Understanding the expenses you find on the income statement is key to making smart investments. For the beginning investor, one of the most important keys to learning about a business is understanding ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

A break-even analysis helps you identify how much your business must sell to recoup costs. Learn how to use it to make smart decisions for your business.

Incremental cost is an important calculation for understanding numbers at different levels of scale. The calculation is used to display change in cost as production rises. If you manufacture one unit ...

Related Terms:Accounting; Bookkeeping; Cost-Benefit Analysis; Economies of Scale Business expenses are categorized in two ways: fixed expenses and variable expenses. Fixed expenses or costs are those ...

Every business owner should understand the cost of production. Whether you manufacture tires, bake cookies or wash windows for a living, you need to know your costs per unit to ensure you are charging ...

Businesses can use the EOQ to figure out the ideal number of units they should order in order to keep costs low. Many, or all, of the products featured on this page are from our advertising partners ...