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 ...

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

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 ...

Discover the importance of homoskedasticity in regression models, where error variance is constant, and explore examples that illustrate this key concept.

Business managers analyze variable and fixed expenses to know costs of business operations and expand on methods of increasing profits. Knowing both variable and fixed expenses helps management to ...

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 ...

Nowadays, we are used to prices of products and services that fluctuate in a wide range. Because of this variability, people will pay dramatically different amounts of money for the product or service ...

In economics, fixed costs and variable costs are two separate components of total cost. Examining the two separately can be useful to demonstrate how much of a company's costs are tied to its level of ...

Nowadays, we are used to prices of products and services that fluctuate in a wide range. Because of this variability, people will pay dramatically different amounts of money for the product or service ...