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 accounting, contribution margin actually refers to the difference between sales revenue and variable costs. Contribution is also known as gross profit. The contribution is the first profit level ...

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 ...

Opinions expressed by Entrepreneur contributors are their own. A fixed cost is one that your business incurs whether or not it makes any sales. An example is rent: It has to be paid every month ...

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 ...