From the course: Introduction to Business Analytics

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Key cost metrics to track

Key cost metrics to track

From the course: Introduction to Business Analytics

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Key cost metrics to track

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- 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. These two main types of costs are fixed and variable, and have a very different impact on your ability to run your business. Fixed costs are investments that you need to make in your business that don't change as you scale up. These kinds of costs often function as a barrier to entry. For example, do you want to open up a brewery? Well, you need the $20,000 on hand to cover the costs of the machinery. Common kinds of fixed costs are rent, software, and subscriptions. Now, the initial investment of marketing could technically be seen as a fixed cost, as it's going to take multiple weeks, or even months, before an ad campaign starts to show a major return. Especially if you're going into a new market, it may take some considerable time to hone in on the right demographic. So,…

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