Hemel & Aarde Village

c/o R43 & R320, Shop 3B, Hemel and Aarde Road, Hermanus, 7201

082 352 9006

Call Us

Mon - Fri: 9:00 - 16:00

Saturday: 9:00 - 13:00

Facebook-f Instagram Whatsapp

Toolkit for Costing a Product

Share this article

BREAK EVEN POINT, COST BEHAVIOR & CONTRIBUTION MARGIN

 

The biggest mistake in Costing a Product is not considering and covering all the costs when entering a market.

Assume it’s Summer Time, we are going into the Ice Cream Business!

Toolkit to Cost a Product

 

Variable Cost – A cost that changes depending on the number of goods produced or services provided.

Toolkit to Price a Product

 

 

Fixed Cost – A cost that stays the same no matter how many goods and services are
provided.

Tookkit to Cost a Product

 

Contribution Margin is used to cover fixed cost.

An organization cannot make a profit unless they cover their fixed cost.

Fixed costs are often considered as Overhead Costs.

 
 

Overhead Costs – Business expenses that are not tied directly to generating revenues.

Important Toolkit to Cost a Product

Break Even Point – The point where fixed cost are exactly covered with no gain and no loss.

Toolkit for Costing a product

No Business is opened to make Break Even they are opened to make Profits.

Important Toolkit to Cost a Product


Follow us for the latest news and trends.

Facebook-f Instagram Twitter Envelope

CONTACT BOOKKEEPING SERVICES

cONTACT dETAILS

Facebook-f Instagram Whatsapp

Links

Copyright © 2021 Bookkeeping Services Overberg

Designed by Wilson Consulting Web Design

Privacy Policy

This website uses cookies to run essential services and improve or personalise your experience. Read more about how we manage your information in our privacy and cookie policy.

Accept & Close