Learn how to use the High-Low Method to separate fixed and variable costs efficiently. Discover its applications, limitations, and how to calculate costs.

Cost basis is the original value of an investment. This helps you determine your gains or losses. It’s useful for determining whether your investments are profitable. This is important for taxes as ...

Identify cost driver for the overhead cost, and the total amount of cost driver in a multi-product production or multi-service offering. A cost driver is a business activity responsible for change in ...

I am trying to calculate the total cost of keeping X number of servers running. Are there any industry standard estimated numbers I can use for this? Or to put it another way, I would like to be able ...

Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.

Going into debt is often a necessary way to build a business. Particularly for small businesses, it might be impossible to avoiding taking out a loan for items such as inventory, equipment and office ...

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 ...

For some products, figuring out the cost is easy: It’s the total figure on the invoice. For other products, like databases, that number is just the beginning. The total cost needs to include all of ...

Tuition isn’t the only factor that goes into the cost of college—and if you don’t take the time to calculate all of the potential expenses, you may end up choosing a college that’s less affordable ...