For the beginning investor, one of the most important keys to learning about a business is understanding its financial statements. And of the three major statements -- the balance sheet, income ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Khadija Khartit is a strategy, investment, and funding expert, and an ...

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 ...

In a business, there are two types of costs: fixed and variable. It’s important to understand the difference between these two types of costs, which costs fit into each category, and how to account ...

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 ...

Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Economic order ...

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 ...