Costing

By: A Staff Writer

Updated on: Jul 19, 2024

Know Your Numbers, Control Your Profits

Costing isn’t just about cents and pennies. It’s the foundation for smart pricing.

• Direct vs. Indirect Costs: Understand the difference between materials and overhead.
• Fixed vs. Variable Costs: Some costs stay constant, others fluctuate with production.
• Track Everything: From supplies to labor, know where your money goes.
• Waste Not, Want Not: Minimize inefficiency and waste in every aspect of your business.
• Costing for Profit: Price your products/services considering ALL costs, with a healthy profit margin.
• Regular Reviews: Revisit your cost structure regularly to adapt to market changes.

Effective costing empowers you to price competitively and maximize profitability.