What Is the Fixed Expenses Formula?

[charlie]

I’m trying to better understand my business’s cost structure and keep seeing references to the fixed expenses formula. I know fixed costs don’t change with sales volume, but I'm not fully sure how to calculate them properly or what should be included. Can someone explain the fixed expenses formula in simple terms? Also, how do I differentiate fixed expenses from variable expenses when preparing financial statements? Any practical examples or tips for accuracy would be really helpful!