Cost Analysis

Learn what contribution margin is, how to calculate it, and why it’s a pivotal tool for business decision-making.

Explore the intricacies of the variable cost ratio and its significance in optimizing production efficiency and profitability. Learn how to calculate it and understand its impact on both variable and fixed costs.

Dive into the intricacies of Equivalent Annual Cost (EAC), a crucial tool in assessing the cost-effectiveness of assets over their lifespans for capital budgeting decisions.

Learn about Total Cost of Ownership (TCO) and its importance in evaluating the true cost of investments. Discover how TCO considerations can lead to more informed and financially sound purchase decisions.

Deep-dive into the strategy of variable cost-plus pricing, where selling prices are derived from adding a markup to variable costs. Learn its key points, advantages, and when to employ this method effectively for maximizing profits.

Discover how incremental analysis can help businesses make informed decisions by understanding the true cost differences between alternative opportunities.