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.

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 ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...