## Fixed Costs and Variable Costs: Entrepreneurs Must Know to Manage Profits
If you're planning a business or trying to increase profits, the first thing to understand is how your costs are divided. Total operating costs can be categorized into two main types, each with different behaviors and impacts on profit.
### Costs refer to expenses or resources that a business must use.
Costs are not just about spending money but include everything you have to sacrifice to design products or provide services. Understanding costs will help you set prices cleverly and know how much you need to sell to br
View OriginalIf you're planning a business or trying to increase profits, the first thing to understand is how your costs are divided. Total operating costs can be categorized into two main types, each with different behaviors and impacts on profit.
### Costs refer to expenses or resources that a business must use.
Costs are not just about spending money but include everything you have to sacrifice to design products or provide services. Understanding costs will help you set prices cleverly and know how much you need to sell to br