The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

When sales increase, it changes certain financial aspects of your business, such as the overhead applied to each unit, your profit margins and your unit fixed costs. Understanding how sales changes ...

The rate calculation has not changed much over the years. I remember the days when we estimated the cost of gasoline for the pony engine to the penny and used the crazy assumption that “repairs, ...

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 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and ...

Accurate equipment cost hinges on the answers to two different questions: What does it cost to bring the machine into your fleet and keep it there, and what does it cost to put it to work? To answer ...

Incremental cost is an important calculation for understanding numbers at different levels of scale. The calculation is used to display change in cost as production rises. If you manufacture one unit ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing. Amy ...