Cost control . If production seeks to reduce production costs, the cost price naturally decreases. Without control, costs will sooner or later begin to rise, including due to employee negligence or even theft.
Employee efficiency . Productivity depends on it: the higher it is, the more goods will be produced and the lower the cost price will be in the presence of fixed costs for a certain period (rent, salaries, etc.).
Quality of tools, equipment
Good machines with consumables reduce the amount of defects, increase the speed of production.
The degree of workload of the production line . If the amount of work is proportionate to the capabilities of workers and machines (no less and no more), this allows not to increase the cost of production. With excessive workload, the number of defective products, machine breakdowns or sick leave among workers may increase.
Production cycle length . The longer a product spends on the line, the more time and effort it takes, which increases its price.
How to calculate cost price
The calculation procedure and the variables included how chinese overseas africa database to calculate it in it vary depending on the field of activity – for example, it differs for goods and services. Here are several formulas by which you can calculate the cost price in different fields.
Calculation of the cost of production of goods
The simplest cost calculation is based only on direct costs, which can be easily tracked:
Partial cost = Material and labor costs / Quantity of goods
For example, you produced 200 wooden shelves, spending 20,000 rubles on how much does dalle-3 cost? materials and packaging. You also paid the employee who made these shelves all month another 35,000 rubles, taking into account all taxes and fees. In total, your expenses amounted to 55,000 rubles, and the partial cost of one shelf was 275 rubles:
NS = (20,000 + 35,000) / 200 = 275
But this calculation does how to calculate it not take into account saudi phone number overhead costs, such as equipment depreciation. It does not include rent for premises, warehouse, or the work of marketers.
To take into account all expenses, you need to calculate the cost price using a more complex formula.
