How do expenses affect a company's profit?

How do expenses affect a company's profit?

Expenses directly reduce a company's profit. When expenses increase, profit decreases if revenue remains constant.

Can you give me an example of fixed and variable expenses?

Sure! Fixed expenses include rent and salaries, while variable expenses include raw materials and utilities.

What strategies can a company use to manage expenses?

Companies can reduce expenses by optimizing operations, negotiating better supplier contracts, and cutting unnecessary costs.

How often should a business review its expenses?

It's advisable for businesses to review their expenses monthly to identify trends and make timely adjustments.

What tools can help track expenses effectively?

Tools like QuickBooks, Expensify, and Microsoft Excel can help businesses track and manage their expenses efficiently.