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.

Every business has operating expenses — that is, the costs of running the business. These expenses can generally be classified in two ways: Fixed expenses and variable expenses. Understanding the ...

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 ...

Marginal costs of production are defined as the overall change in costs when a company or manufacturer increases the amount produced by one unit. Marginal costs can help firms determine the level at ...

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 ...

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.