Discover what avoidable costs are, how they benefit businesses, and real-world examples of strategies to minimize expenses and boost financial flexibility.

Companies focus on their fixed costs to maximize profits at the end of the fiscal year. If a company's fixed costs are too high, the company might not create a profit for that fiscal period.

In accounting, contribution margin actually refers to the difference between sales revenue and variable costs. Contribution is also known as gross profit. The contribution is the first profit level ...

Cost structures (the ratio of fixed to variable costs) vary across and within industries. Hospital managers and policymakers can make better decisions when they under-stand cost structures, including ...

Discover what labor costs encompass, their categories—direct and indirect—and why they matter in pricing strategies to maintain profitability.