How to calculate the cost of sales? To reduce the labor intensity of determining this indicator, costs are classified according to certain criteria.
Based on their impact on the production process, costs are divided into direct and indirect .
For example, the costs of purchasing materials and equipment and the wages of personnel creating the product are direct, while the costs of marketing activities and organizing advertising campaigns are indirect.
According to the criterion of connection job seekers data package with the volume of production, costs are divided into variable (change depending on the quantity of the product produced) and fixed (stable costs that do not depend on deviations in the production cycle).
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Formula for calculating the cost of sales
A simplified formula for determining the cost of sales is as follows:
Cost of sales = Production expenses + Selling expenses.
There are options for a more accurate calculation of the coefficient taking into account unsold products:
Cost of sales = Production expenses + Commercial expenses + (Balance of unsold products at the beginning of the reporting period - Balance at the end of the reporting period).
If the company specializes in construction, then work in progress serves as a clarifying parameter.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow