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 ...

If you operate a manufacturing company, you can benefit from understanding the experience curve. This curve suggests that the more you produce, the less each unit costs you. This happens because fixed ...

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 ...

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 ...

Related Terms:Accounting; Bookkeeping; Cost-Benefit Analysis; Economies of Scale Business expenses are categorized in two ways: fixed expenses and variable expenses. Fixed expenses or costs are those ...