Incremental cost is an important calculation for understanding numbers at different levels of scale. The calculation is used to display change in cost as production rises. If you manufacture one unit ...

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 ...

The variable contribution margin, also known as the contribution margin or gross profit, describes the amount of profit generated by the sale of an item for a company. The variable contribution margin ...

Overhead costs are expenses tied to things other than the production of goods or services. Here's how to calculate overhead.

Discover the differences between fixed and variable costs and how they impact production costs. Learn to analyze these costs ...

The rate calculation has not changed much over the years. I remember the days when we estimated the cost of gasoline for the pony engine to the penny and used the crazy assumption that “repairs, ...