Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...

Cost accounting examines how a company spends money. All expenses are recorded and analyzed in detail and then reported to management, who uses this information to identify ways to increase efficiency ...

The amount of money many companies spend is in many ways directly proportionate to how much they produce. That is, there are a lot of variable costs that come with running a company. These costs are ...

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 ...

Fixed and variable expenses mean different things to the accountant. Fixed expenses remain unchanged in total throughout the year. These expenses decrease as production increases. Variable expenses ...

A change in demand affects your sales and impacts your variable costs. As your sales grow, your variable costs increase. As your sales fall, your variable costs decrease. If you raise or lower your ...

Profit and Loss: Understanding profit and loss is essential in economics and accounting. This article aims to explore various essential elements related to profit and loss, including concepts such as ...