Just because you make a profit doesn't mean you are achieving your optimal profit goals. In some cases, profits can be deceiving if they don't give you a good return on your investment in making and ...

Overhead is the cost of running a company's daily business operations. This amount is fixed and does not change as the company's production level rises or falls. The operating overhead rate is ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

Learn the key differences between profit margin and markup, how they are calculated, and their impact on pricing and revenue.

We lost a little bit, but the job still made money.” As a construction business owner, you know that “making money” at the project level does not necessarily equate to a profit on the project after ...

Learn how gross margin and operating margin differ in assessing a company's profitability to inform investment decisions.

In my book Great CEOs Are Lazy, I discussed the elements of a great business model. One of the most critical elements of any good business model is margin–specifically gross margin. Lots and lots of ...

Every now and then, you must be controversial and address a subject where your beliefs run counter to common practice. Overhead and overhead-cost recovery is one of these subjects. The controversy has ...