Variable costs change in proportion to production levels ... Precise cost tracking enables accurate pricing for each product. Indirect costs, also known as overhead, can't be directly traced ...

For companies, gauging how and when they will reach the breakeven point is crucial for financial planning and pricing ... costs by the contribution margin (price per unit minus variable costs ...

The newly-implemented tariffs on Mexico, Canada and China could lead to higher prices on many goods imported into the U.S.