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 ...

Identify cost driver for the overhead cost, and the total amount of cost driver in a multi-product production or multi-service offering. A cost driver is a business activity responsible for change in ...

A break-even analysis helps you identify how much your business must sell to recoup costs. Learn how to use it to make smart ...

Opinions expressed by Entrepreneur contributors are their own. We recently explained the process of arriving at calculations for mark-up and gross margin. Next, we thought we would walk reader through ...

The best way to ensure that your pricing is competitive without pricing products too low for your business to survive is to understand your costs and the profit per piece. Once you can calculate how ...

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...

Contribution margin is used to help measure product profitability. It helps business owners understand how sales, variable costs and fixed costs all influence operating profit. The larger the ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. Contribution margin is used to ...