Companies focus on their fixed costs to maximize profits at the end of the fiscal year. If a company's fixed costs are too high, the company might not create a profit for that fiscal period.

Learn how to distinguish marginal costs by exploring their relationship with fixed and variable costs in production.

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 ...

Fixed costs are expenses that remain the same no matter how much a company produces, such as rent, property tax, insurance, and depreciation. Variable costs are any expenses that change based on how ...

A business must spend money or it cannot operate. A business separates the costs it incurs into two main categories: fixed costs and variable costs. A business may then break its fixed costs down into ...

Learn what irrelevant costs are in business, how they differ from relevant costs, and why knowing the distinction is crucial for effective management decisions.

As you work to create a budget, it’s important to understand how fixed and variable expenses will impact your bottom line. David McMillin writes about credit cards, mortgages, banking, taxes and ...