Business managers analyze variable and fixed expenses to know costs of business operations and expand on methods of increasing profits. Knowing both variable and fixed expenses helps management to ...

The contribution margin reflects the amount of revenue that remains after variable expenses are deducted from the overall sales amount. The contribution margin ratio reflects the contribution margin's ...

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 ...

Opinions expressed by Entrepreneur contributors are their own. 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 ...