Learn how variable costs fluctuate with production levels and their impact on profit margins. Explore examples like raw materials and hourly labor.

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 ...

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 ...

Unit labor cost measures the price of labor for a single unit of output, such as a single product. While a small business may calculate the unit labor cost specific to its business, the U.S. Bureau of ...

According to the National Association of Manufacturers, manufacturers contributed $1.87 trillion to the United States economy in 2012, an increase from the $1.73 trillion contributed in 2011.