In Yandex Bas on the calculat cost price of one product and its price, you can begin searching for the break-even point . This indicator reflects how many products ne to be sold for the business to cover all expenses and start making a profit. And bas on the calculat break-even point – i.e. the actual period when your business will start making a profit – you can plan possible modernization, expansion of production, and other development activities.
Of course, a preliminary calculation may yield a better result than actual production, especially if the entrepreneur lacks experience. But it is better to have at least an approximate calculation than none at all.
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Types of cost price
There are several methods for calculating cost price. Each option is ne at a certain stage of business planning and analysis in order to catch “problem” moments and keep records.
Depending on the costs includ in the calculation, the cost of production is divid into three types:
- Workshop . Includes only direct production costs: labor, materials, consumables.
- Production . Includes direct and indirect production how does itsm help businesses manage costs – not only the cost of labor and 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 saudi phone number cost is usually us – it includes all variables that affect the final profit.
Knowing the full costs, a business can prict the term and size of profit. Shop and production costs are ne primarily for internal analysis, searching for more profitable options.
