You can also Plann . Calculat before production starts bas on expect expenses. At this stage, the entrepreneur does not yet know how much money. Will be spent in fact, plans expenses bas on the information found, statistics or using other data sources. Plann cost is us for business planning and decision making.
Actual . Calculat after the start of production bas on real data that was obtain during the process. Reflects how much money is spent on creating and selling a product or service. Actual cost can be compar with plann cost to determine how much the result deviat from what was originally plann.
Standard You can also
Calculat on the basis of pre-determin standards for the consumption of materials, components, fuel, electricity, and other costs. These standards, in turn, are specifi either on. The basis of previously collect 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 chinese overseas canada database business’s operation – each nes to be calculat for any product or service you are going to produce.
Why do you ne a business plan and how to write it correctly
What does the cost price depend on?
The cost of production and sale of goods or services 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 how to boot to advanced recovery options competitors in the market and other factors.
External causes
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 . Along with fluctuations in foreign currency, prices saudi phone number for services, goods, materials and consumables also change, especially if some of them are import.
Cost of materials . The price of raw materials can also be affect by market changes, such as the emergence of a new competitor for a supplier or an increase in demand for materials.
