What is includ The cost price consists of all expenses that one way or another appear in the production process. This includes both direct and indirect costs that at first glance are not relat to the production of goods or the provision of services.
Direct costs are everything that directly relates to production. That is, work and materials, as well as equipment, depreciation, consumables.
Indirect costs are expenses on items that are not directly relat to the production of products, but are ne to maintain the company’s operations.
The cost price includes:
What is includ Material costs are the cost of materials, components and packaging us to produce a product or provide a service.
Labor costs. This item includes the full cost of labor that chinese overseas australia database was spent directly on the production of goods or services, including insurance premiums, benefits, and other expenses for employees involv in the process. This also includes the salaries of employees who are directly involv in sales.
Direct overhead costs. Costs of production or service that do not relate to the two previous points: for example, the purchase and maintenance of machines, depreciation of tools, the purchase of consumables, etc.
Indirect overhead costs
Are expenses that do not directly relate to a specific product, but using picture in picture manually are us to produce or sell it. For example, warehouse rent, utility bills, taxes, marketing, etc.
Management overhead costs. These include salaries of administrative workers not directly relat to the production of goods (accountants, secretaries, managers, etc.). These costs also include costs for saudi phone number functions and services not relat to production, such as legal advice.
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 cost of purchasing, transportation (possibly even from another country), and all the accompanying cash infusions.
