Discover what avoidable costs are, how they benefit businesses, and real-world examples of strategies to minimize expenses and boost financial flexibility.

Discover how to calculate variable overhead spending variance, its impact on costs, and examples of favorable vs. unfavorable ...

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 ...

Just because a service business doesn't produce tangible goods, that doesn't mean it has no related costs. Mixed costs for a service business have a variable element and a fixed element -- hence ...

In economics, fixed costs and variable costs are two separate components of total cost. Examining the two separately can be useful to demonstrate how much of a company's costs are tied to its level of ...

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 ...

Budgeting, quite simply, is the act of spending your money efficiently. The importance of budgeting cannot be overemphasized, and whether you’re looking at your individual finances or running a ...

The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

When creating a budget for your small business, you are attempting to plan how much money you’ll need to make in order to cover your costs — and then some. But how do you plan when some of your ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

Cost accounting is a process that involves recording, analyzing, and reporting a company's expenses in detail. Unlike financial accounting, cost accounting is an internal process used only by company ...