Cost accounting examines how a company spends money. All expenses are recorded and analyzed in detail and then reported to management, who uses this information to identify ways to increase efficiency ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...

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 ...

Fixed and variable expenses mean different things to the accountant. Fixed expenses remain unchanged in total throughout the year. These expenses decrease as production increases. Variable expenses ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

A change in demand affects your sales and impacts your variable costs. As your sales grow, your variable costs increase. As your sales fall, your variable costs decrease. If you raise or lower your ...