How do business expenses affect profit margins?

How do business expenses affect profit margins?

Business expenses directly reduce profit margins. Higher expenses mean lower profits if revenues remain constant.

Can you give examples of common business expenses?

Sure! Common business expenses include rent, salaries, utilities, and marketing costs.

What strategies can businesses use to manage these expenses?

Businesses can implement budgeting, negotiate with suppliers, and automate processes to reduce expenses.

How often should a business review its expenses?

It's advisable to review expenses quarterly to identify trends and make necessary adjustments.

What impact do unexpected expenses have on profit?

Unexpected expenses can significantly impact profit by eroding margins and affecting cash flow.