Different Types of Operating Expenses
The cash flow is affected immediately by any changes in operating costs. If operating costs increase for any reason without a corresponding rise in income, cash flow will decrease. Similarly, profitability will be directly affected – higher operating costs will reduce profitability unless offset with increased revenues or decreased other expenses. The total cost formula […]
Ap Definition & Meaning
The offsetting credit is made to the cash account, which also decreases the cash balance. Variable costs are expenses that can change depending on the volume of goods produced or sold by a company. For example, a manufacturer would incur higher costs if it doubled its product output. Companies may also face higher tax rates […]