Understanding the expenses you find on the income statement is key to making smart investments. For the beginning investor, one of the most important keys to learning about a business is understanding ...

A product's contribution margin tells you how much that product contributes toward paying your company's fixed costs -- and, once those costs have been covered, how much it contributes toward profit.

All products and services have certain inherent costs associated with them. You can determine the cost of materials per product by dividing the cost of the raw materials by the number of units ...

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 ...

Marginal costs of production are defined as the overall change in costs when a company or manufacturer increases the amount produced by one unit. Marginal costs can help firms determine the level at ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Last month, we discussed various pricing methods, and how aggressive pricing models do not necessarily generate operating losses if one controls costs in sync with aggressive pricing to generate a ...