Fixed Cost

Fixed cost is a cost that does not modify with an increase or decrease in the amount of goods or services produced. Fixed costs are everyday expenditure that has to be paid by a company, self-governing of any business goings-on. It is one of the two mechanism of the total cost of a good or service, along with variable cost.

Types of Business Costs

  It is very important to distinguish or differentiate business costs as they help in recognizes the cost figures that your business produce by selling goods or services. There are different types of costs such as direct costs, indirect costs, fixed costs, variable costs,

Contribution Margin Ratio (CM Ratio)

Learning Objectives: Define and explain contribution margin ratio. Calculate CM ratio. What is the importance and benefit of calculating CM ratio? Contribution margin percentage or average  Definition of Contribution Margin Ratio Formula Calculation Importance Review Problems Contribution Margin Ratio Calculator Definition of Contribution Margin Ratio: The contribution margin as a percentage of total