Some of these points are also relevant for those who do not produce goods, but buy them for resale. Yes, there will be
no production costs, but you will have to take into account the There are several methods cost of purchasing, transportation (possibly even from
another country), and all the accompanying cash infusions.
PromoPult is a convenient and modernThere are several methods
platform for advertising any business on the Internet. Bring your website to the top of Yandex and Google search ,
launch ads in Yandex Direct and VK projects and get “hot” leads. And if you sell on marketplaces, use free tools for
Wildberries sellers – bidder rates, booster analytics, keyword selection and monitoring of positions in WB search,
report on sales, revenue and competitors’ rates.
Types of cost priceThere are several methods
There are several methods for calculating cost price.
- Workshop. Includes only direct production costs: labor, materials, consumables.
- Production. Includes direct and indirect production costs – not only the cost of labor, materials, but also depreciation of machines, rent of production premises and similar expenses.
- Full. Includes all direct and indirect costs: production, advertising, sales, etc. This indicator accurately reflects how much money is spent on a unit of production from creation to purchase.
To calculate profitability and find the break-even point, full cost is usually used – it includes all variables that affect the final profit.
Knowing the full costs, a business can predict the term and size of profit. Shop and production costs are needed primarily for internal analysis, searching for more profitable options.
You can also classify the cost price according to the moment when you plan to calculate it: There are several methods
- Planned. . At this stage, the entrepreneur does
- not yet know how much money will be spent in fact, plans expenses based on the information found, statistics or using other data sources. Planned cost is used for business planning and decision making.
- Actual. Calculated after the start of production based on real data that was obtained during the process.
- Reflects how much money is spent on creating and selling a product or service. Actual cost can be compared
- with planned cost to determine how much the result deviated from what was originally planned.
- Standard. Calculated on the basis of pre lesotho business email list There are several methods -determined standards for the consumption of materials, components,
- fuel, electricity, and other costs. These standards, in turn, are specified either on the basis of previously collected
- statistics or on the basis of the requirements set by the customer. Allows you to set the bar for the “ideal cost
- price” to which you should strive in the process of work, and also serves for comparison with the actual cost
- price when looking for deviations.
All three types are important at different stages of a business’s operation – each needs to be calculated for any product or service you are going to produce.
What does the cost price depend on?
The cost of production and sale of goods or services but it’s not just about those outside of your department cannot remain the same from year to year. It depends on the
political and economic situation, the management decisions of the business owner, the behavior of competitors in the
market and other factors.
External causesThere are several methods
Inflation. The more the country’s money depreciates, the more expenses businesses have to bear: increase salaries,
take into account the increase in prices for raw materials, equipment and consumables.
Exchange rates.
Cost of materials. The price of raw materials can shops 9177 also be affected by market changes, such as the emergence of a new
competitor for a supplier or an increase in demand for materials.
The situation on the labor market. The shortage of qualified employees a