LESSON 9: Apply the concept of Fixed and Variable costs Articles

LESSON 9: Apply the concept of Fixed and Variable costs to profoundly increase your bottom line profit

 We have already spent a few paragraphs on the distinction between fixed costs and variable costs. However, even though this concept is reasonably simple it is so crucial that it warrants a short section to itself. If you are to manage your business finances effectively – which means using them as a tool to boost […]

9.1 How your knowledge of fixed and variable costs helps you plan your profit

 Let’s look at a very simple example of the effect variable and fixed costs have on your profit, and how you can use that knowledge to both accurately plan your profit and to squeeze a lot more profit out of your business. Assume a business has £100,000 of sales, and £80,000 in total costs. It […]