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 ...

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 ...

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 ...

Every business has fixed costs, which play roles in determining break-even points. Businesses also have variable costs, which make finding the actual break-even point more difficult than in ...

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 ...

Discover the differences between fixed and variable costs and how they impact production costs. Learn to analyze these costs ...

A key figure to know for operating a restaurant is your break-even point. The break-even is basically the amount of sales you need over a certain period of time not to lose money. The basic formula ...

One of the most important and challenging aspects of the bidding process is including the cost of machine usage. Many construction companies struggle to determine whether they should be including just ...