Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

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 ...

Learn about the differences between fixed and variable costs and find out how they affect the calculation of gross profit by impacting the cost of goods sold.

Examples of Mixed Costs in Accounting. You can categorize your business costs as fixed, variable and mixed based on how they change in response to your sales or production output.

What Is the Difference Between the Different Cost Types? Fixed costs, variable costs, and total costs all sound similar, but there are significant differences among the three. The main difference is ...

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 ...

Elizabeth is a freelance contributor to Newsweek’s personal finance team, with a focus on insurance. She has more than four years of experience covering insurance and has written hundreds of articles ...

In accounting, contribution margin actually refers to the difference between sales revenue and variable costs. Contribution is also known as gross profit. The contribution is the first profit level ...

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, 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 ...

Variable expenses, like gas or groceries, are costs that vary due to price or consumption changes. Fixed expenses, like your rent or mortgage, usually stay the same.

Cost structures (the ratio of fixed to variable costs) vary across and within industries. Hospital managers and policymakers can make better decisions when they under-stand cost structures, including ...