How to calculate the costs

Any budding entrepreneur interested in how much it will cost the opening of a business, especially if it is associated with the release and production. On how well will be costed in production, will depend on further activity of the enterprise.

Instruction

1. To begin to determine the extent to which you will provide services or produce products. You should clearly know that this month you will produce, for example, 200 pieces of product or provide a service to 200 people.
2. Now calculate the variable cost (costs that change based on the amount of service or output), it is necessary:
   To calculate the cost of materials (cost of raw materials, which will be buying for the manufacture of products). The cost of raw materials required for production of unit of product is multiplied by the volume of the planned issue. If you provide a service, in this case, you will not have this costs.
3. The cost of labor. Decide how many people will you have to work to meet the production plan or service plan, and how much salary you pay them.
4. Deductions on social needs. As a rule, contributions to the social security Fund and insurance Fund. The percentage of a probe into the transactions.
5. Now you need to calculate the costs are constant (they are not associated with volume of rendering of services or manufacturing of goods). They consist of General production and General business expenses (include expenses for rent, depreciation of purchased equipment and fixed assets, etc.), commercial expenses (advertising costs and delivery of the goods to the consumer – if it's there).
6. All amounts, variable and fixed costs need to be added. This will be your cost of producing and manufacturing products.