Tag: Mixed Costs

  • Fixed and Variable Costs in a Restaurant

    Fixed and Variable Costs in a Restaurant

    Many restaurant owners and managers do not understand the difference between their fixed and variable costs. The problem with defining fixed and variable costs in a restaurant relate to their connection with sales.

  • Mixed Costs

    Mixed Costs

    Mixed costs are a more advanced business concept.  Mixed costs refer to a combination of both a fixed and variable component.  A common error made by most small business entrepreneurs is the misapplication of the formula.  Many small business owners understand the textbook definition but rarely exercise the concept in reality.