Learn how to distinguish marginal costs by exploring their relationship with fixed and variable costs in production.

You can categorize your business costs as fixed, variable and mixed based on how they change in response to your sales or production output. Fixed costs remain the same no matter how many units you ...

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 ...

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 ...

In traditional cost accounting for manufacturing, categorizing costs as fixed or variable has been part of accepted practice for a long time. In recent years, the practice has diminished because this ...

As you work to create a budget, it’s important to understand how fixed and variable expenses will impact your bottom line. David McMillin writes about credit cards, mortgages, banking, taxes and ...