The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

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 ...

Incremental cost is an important calculation for understanding numbers at different levels of scale. The calculation is used to display change in cost as production rises. If you manufacture one unit ...

Today’s economic uncertainty is leaving CEOs with little choice but to cut large line-item costs, reduce their workforce and reexamine their unit economics—their overall “cost to revenue ratio”—in ...

Last month, we discussed how you could get better control of the equipment you own and rent. This month, we’re going a step further by offering up a couple of ways to collect and analyze the data.

The market's concentration on Tesla, Inc. gross profit margins overlooks the lack of progress in cutting unit production costs. Tesla's ability to grow gross profit globally has been aided by first ...