So many of a business’ costs fluctuate based on operations. For example, the more products you make, the more you’ll spend on materials to make them. However, there are several important costs that ...

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 ...

Discover the difference between fixed and sunk costs. Learn why all sunk costs are fixed but not all fixed costs are sunk, ...

Businesses with several streams of revenue often prepare segmented income statements to analyze the performance of each of the company's operations. When a business prepares such an income statement, ...

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 ...

Opinions expressed by Entrepreneur contributors are their own. 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 ...

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 ...

Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.