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.

Discover the key types of operating expenses, including fixed and variable costs, and learn how they impact a business's ...

Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also ...

In accounting, contribution margin actually refers to the difference between sales revenue and variable costs. Contribution is also known as gross profit. The contribution is the first profit level ...

Discover what avoidable costs are, how they benefit businesses, and real-world examples of strategies to minimize expenses and boost financial flexibility.

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

In America, cost-cutting tends to follow a predictable pattern: recessions hit, companies panic and leaders start slashing budgets to weather the storm. The financial crisis of 2008 forced businesses ...

Stephanie Trovato is an experienced journalist with a focus on tech and small business. She has written for national web publications like Hubspot, SmallBizClub, and Investopedia. You can find her at ...