Learn to calculate production costs in Excel using templates and formulas. Streamline expenses and improve financial management with our comprehensive guide.

Learn how to calculate the variable cost ratio to balance production costs and revenues. Understand its role in optimizing profit margins and business decision-making.

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 ...

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 ...

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 ...

The variable contribution margin, also known as the contribution margin or gross profit, describes the amount of profit generated by the sale of an item for a company. The variable contribution margin ...

A break-even analysis is an indispensable financial planning tool that helps you understand your business’s revenue, expenses and cash flow so you can work towards profitability. Below, we’ll examine ...

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 ...

One of the most important and challenging aspects of the bidding process is including the cost of machine usage. Many construction companies struggle to determine whether they should be including just ...

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 ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. Contribution margin is used to ...