From the course: Introduction to Business Analytics (2020)

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Key cost metrics to track

Key cost metrics to track

From the course: Introduction to Business Analytics (2020)

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Key cost metrics to track

- What cost metrics should you track? Well, the short answer is all of them. But there are different types of costs that impact your business. The two main types of costs are fixed and variable, and each of these costs have a very different impact on your business. Fixed costs are investments that you need to make in your business that don't scale up as you grow. These kinds of costs often function as a barrier to entry. For example, if you want to open up a brewery, well, you're going to need $20,000 on hand to cover the costs of machinery. Common kinds of fixed costs are rent, software and subscription. The cost of marketing falls under fixed costs as well. It can take weeks or even months before a marketing campaign starts to show a major return. Especially if you're going into a new market. It may take some considerable time to really hone in on the right target demographic. On the other hand you have variable costs,…

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