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 ...

Businesses face two basic types of costs: fixed costs and variable costs. While variable costs change depending on things like sales volumes, fixed costs tend to stay the same regardless of how much ...

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 ...

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 ...

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 whether or not you're generating any income, and it's the same every ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

In these challenging economic times, business executives are increasingly focused on converting as many costs as is feasible from fixed to variable. IT leaders will gain credibility by becoming ...

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 ...

Now, let’s focus on money going out, or total expenses. This step can often be more complicated because of how many different expenses we can have on a daily basis! To break it down into simpler bits, ...

What is a fixed cost? A fixed cost is a business expense which does not vary with production volumes. Fixed costs often include rent, contractual agreements or licences that are needed for the ...

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 ...