Companies that have two different cost pools for fixed and variable costs will allow for more accurate financial planning and decision making. Tracking fixed costs will allow companies to initially allocate theses funds aside for projects and work with the remaining budget and spend more time discussing potential variable costs. If variable costs are too high, organizations may spend funding on improvement projects to make projects or processes more efficient to reduce variable costs in the future. If variable and fixed costs are pulled together, it will be more difficult to understand how efficient the company is running and where improvements can be made