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Costing

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Costing is calculation of actual production expenses and revenues of a certain task. A Cost-Benefit Ratio is calculated to study whether the benefit is sufficient with respect to the Cost of the product or service. The overall costing includes: 1. Pre-production expenses (Marketing Survey, advertisement etc.), 2. The production expenses (from raw material purchase to packing of finished product, depreciation of assets, running expenses etc.) , 3. Expenditure for Sale of the product (including VAT or other taxes, advertisement, commissions, transportation etc.), 4. Profit (Manufacturer - 10%, Distributor - 1% -5%, Wholesaler - 10% -15%, Retailer - 10% -20%)