Advice 1: How to calculate selling price

The problem of determining the price realization is one of the most challenging to date for any enterprise. The strike price is the price at which you sell your goods/products/services. It depends on many factors: market conditions and average prices of the same goods from cost and production costs, the purchasing power of the target group, the number of competitors and the chosen competitive strategy. So how do you calculate price realization?
How to calculate selling price
Instruction
1
Calculate an initial sale price by the formula:
TSR = (S + P +A)+ VAT
Where
TSR – selling price
– Unit cost of products/goods
P – planned /desired level of profit (profitability)
A – the excise duty (if any)
VAT – added tax stoiomst
Decide on the level of income and profits you wish to obtain over the planning period. Make sure sales can provide you this level.
2
Determine the break-even point, i.e. the volume of sales at which there is neither loss nor profit. This is necessary in order to understand, below what level of implementation you can't fall. The break-even point = Total fixed costs/(price - variable costs per unit of output).
3
Get to know the market. Find out the volume of product sales your group. Find out the prices for similar goods, works and services from your competitors. Find out what products are substitutes for the product that you produce. Conduct market research of the expectations of customers.
4
Compare the original (desired) selling price which you have by calculating with the prices of your competitors or with the level of expectations of customers.
5
Adjust the initial sale price. Develop and install system of discounts. Set different prices for different sales volumes. Build a graphical model. For this purpose, according to the x-axis show price on the y-axis is the sales volumes. Build curves of supply and demand, on the basis of previously collected data for marketing research (demand curve) and their own expectations (the supply curve). Thus, you learn the optimum sales price for your market.
Useful advice
If the cost per unit of output at your enterprise is structured into fixed and variable costs you can calculate the price of realization on the level of variable costs. This may be necessary if aggressive policy of entering the market, with the market introduction of new products. In this case you neglect fixed costs, it does not affect the final result, i.e. not relevant.

Advice 2 : How to calculate the cost

Under cost refers to the totality of material costs, which was spent on the production and sales of products. The cost of finished goods allows us to understand how effectively a particular production. When you calculate the cost of using 2 main methods.
The cost of finished goods allows us to understand how effectively a manufacturing
You will need
  • -Knowledge of cost of production figures on various counts.
Instruction
1
Method 1. The use of calculation articles.
Costing - calculation of the unit cost of finished products on the basis of various items of expenditure. There are several such articles:
1) Materials;
2) Wages of production workers;
3) Purchased from the products, prepared foods and a variety of production services;
4) Mandatory deductions and deductions for social. needs;
5) Additional wages;
6) Maintenance of the manufacturing equipment;
7) the Cost of development of the newly opened industries, the wages of managers, engineers and maintenance staff, as well as maintenance of premises (6 previous points + 7th form shop cost of finished products);
8) Costs for promotion, for awarding work, travel, etc (7 of the preceding paragraphs + 8 obsesivos determine the cost of finished products);
9) non-production costs: transport, storage and bringing the goods to the consumer (All 9 points will be the total cost of production);
10) the cost of additional and auxiliary materials.
2
Method 2. The calculation of production costs by economic elements.
This method allows to obtain an overall estimate of the cost of production, and hence the company can maintain effective planning of their business activities. For all types of businesses, a unified composition elements:
1) Basic raw materials that are acquired from the semi-finished products and production sets;
2) Materials auxiliary character;
3) Fuel, fuel;
4) Electricity;
5) the Salary of all production personnel;
6) Social contributions;
7) depreciation deductions;
8) Cash costs of a different nature.
Note
We must not forget that the calculation of production costs by economic elements and includes the deduction of the cost of returnable waste. By this term is meant the secondary raw materials that will be used in subsequent cycles of production.

Advice 3 : How to do the calculation

In everyday accounting practices, the question arises how to do the calculation? First and foremost, this question is relevant for the food and other industries. Calculation translated from Latin means "calculation of unit cost or individual performed work". Thus, the calculation required to determine the cost per unit of output, as well as for pricing retail prices.
How to do the calculation
Instruction
1
Calculate the cost estimate, using one of the methods. The first method is to use a conventional accounting software. So, the program 1C provides the option of calculating the planned and actual costing of different ways.
2
The second option is to use a specialized program for a calculation. These programs are not designed for conducting full accounting, and only serve to calculatoare. The third way is to make the calculation manually.
3
Select the option that best suits you. In any case, making a routine calculation, try to anticipate all possible costs: raw materials, costs of electricity, rent per unit of production, wages of personnel, taxes on payroll, transportation, commercial, General and other expenses. In this sense, it is easier to make actual costingwhen all the expenses have already been made, it remains only to calculate the proportion per unit of production.In conclusion, we note that the calculation is considered a qualified accounting operation that requires specific knowledge, skills and experience. Think, perhaps, the most simple option is to hire a accountant's calculator?
Note
In the costed case it is important not only to correctly identify objects of calculation, but the calculation unit, i.e. the units of production used for the calculation of its cost. Accrued items should characterize the specific nature of the product, reflect a quantitative unit of product of a certain quality, to be United for the calculation of homogeneous products in all enterprises.
When choosing the objects of calculation and calculation units of products you need to assume that every concrete product has a real cost in the cost. And the Association of various types of products in one costed group, such as "book-bookbinding products", will lead to the depersonalization of production costs in the cost of printed materials. Therefore, the enlarged group costed objects is possible only in the case that the cost of its manufacture is commensurate. For example, in the group of goods of cultural-household purpose - the production of notebooks or sketchbooks.

Advice 4 : How to make the calculation work

Calculation – calculation of the unit cost of products, provided services or executed work. This is one of the main indicators of planning. The calculation is made for work or services that are not core business of the company and includes decoding of articles of the costs for each type of products, works or services provided for in the tax and other charges.
How to make the calculation work
Instruction
1
List of costs that you should consider when preparing the costing, their composition and distribution methods depending on the type of products, services and work performed determined by sectoral standards and regulations, as well as the methodological guidelines used in the concrete industry given the nature and structure of production. The costs that you included in the cost estimate, must be calculated according to the norms approved by management or the regulations, determined in the prescribed manner.
2
In the calculation of single lines, highlight the direct costs directly attributable to the production of goods, performance of works, provision of services and those costs that are considered indirect and are associated with the production service. The direct costs include the costs associated with the technological process of manufacturing products, cost of consumables, raw materials, costs of fuel and electricity, wages of workers and specialists, taxes and social charges from wages. The indirect costs take the cost of preparatory work, content, operation and maintenance of equipment other operating expenses – SG & a expenses.
3
Direct costs related to manufacturing technology, are determined on a unit of production or individual production step on the basis of direct accounting of timekeeping, material consumption, etc.
4
Those costs, direct rules and regulations which do not exist including costs for maintenance and production management are included in the calculation by the calculation in accordance with industry practices, and estimates.
5
The lack of calculation that serves as the basis for the application of the used tariffs and rates, may entail the application of penalties from regulatory bodies.

Advice 5 : How to make a costing for manufacturing

The ability to cost for production will be useful at home and at work. When planning the repair of apartments, building a house or manufacturing of baths, you need to calculate the cost of work and quantity of materials.
How to make a costing for manufacturing
You will need
  • the program Microsoft Office Excel.
Instruction
1
Use a calculation in the Microsoft Excel. She has easy to handle interface, which can be used not only to calculate the total amount, but also subtract, or multiply the individual counts, as well as replace one value by another.
2
Hover over a cell in the top left corner to make the table. Its designation in the program - A1.
3
Hold down the left button of the mouse and count six columns to the right (to cell F1). The number of rows must be equal to the number of items that need to be written in the estimate.
4
Type the names of the columns. The first is a sequence number. Label it a symbol of the no. The second is the name of the material or type of work. For example, when providing a service list here the points of all the actions that will be produced. And with the purchase of the hardware - name of all products. Third - the unit price of the product or service. The fourth column - number of units, times, etc.). Name it is an abbreviation of "number".
5
The fifth column - the total cost estimate of works or materials. Make amount for all the items or service by the same name. Subsequently will automatically add up the total cost. To let the program to perform this operation, do the following:

- click the left mouse button and highlight the entire fifth column;

- press the right mouse button, then appears a table with the actions;

- locate the "Format cells";

- select the first tab "Number";

- specify the format - "Cash" or "Numeric".
Following the steps, calculate the total amount. Again, highlight the whole column. In the upper corner to the right, look for the symbol Σ (Sigma). Click on it to have all the numbers in the right column.
6
In the sixth column place the notes. Enter here any additional information. Where to buy the right materials, colors, deadlines, phone customers, etc., So that the text information was displayed correctly, do the following:

- using the left mouse button, highlight all the lines of the sixth column;

- right click the mouse to the table with the action displayed on the monitor;

- select "Format cells";

- move to the first tab "Number";

- specify the text format.

Advice 6 : How to make costing

Calculation of the costs determined to calculate the actual or planned cost of production in order to calculate a correct assessment of the product and average cost of production. Preparation of cost estimate involved, as a rule, the economic planning Department of the company based on accounting data.
How to make costing
Instruction
1
Make a list of articles costing businesses that comply with industry instructions for accounting, planning and analysis of the production costs produced by the company. This list can include: raw materials, purchased products, outsourced services, recurrent costs, spent fuel and energy, wages, deductions in the budget, the preparation costs of production, costs of production loss in the case of marriage, selling expenses and other operating expenses of the enterprise.
2
Perform a calculation of cost of production and cost production for the total cost of the product. Take the direct costs of the cost of individual products, and at the end of the reporting period distribute indirect costs between these types of products, in accordance with the production base. Thus, it will be calculated in the total costs of production.
3
Define a standard cost estimate costs for producing one unit of output. This value determines the company's costs for the planning period, used to calculate rates for manufactured products and remains unchanged for the entire calculation period.
4
Create standard costing in case of change of source data. This indicator is used for analysis and control of production processes, calculation of actual cost of production and identify deviations from the plan.
5
Reflect according accounting actual costing of manufactured products. It reflects the expenses and losses of enterprises that were not considered in the preliminary cost estimate. The preparation of this characteristic allows to carry out planning and analysis of financial-economic activities of the organization.

Advice 7 : How to calculate costing of services

If you decide to do business, for example, to open a Barber shop or computer shop you will need to make the costing of services. Well-written estimate will help you not only to set the right prices, but also the right to execute all documents.
How to calculate costing of services
You will need
  • - the price of consumables;
  • - the amount of payments to staff.
Instruction
1
First calculate the cost of materials. This is the most obvious, but it is actually not a simple item of expenditure. Keep in mind not only direct costs – the paint for hair (for the hairdresser), cleaning supplies (for domestic services), printing paper (photo Studio), gasoline (for transportation), etc., but also indirect, for example, removable filters for washing machines or the cartridge for printer, repair and maintenance of the car.
2
If you bought equipment for work such as computers, printers, hair clippers, vacuum cleaners, vehicle, then calculate depreciation. To do this, think about or find out exactly (in accounting statements) the life of the product and divide the price by the time in which the technique is justified. You can calculate depreciation in other ways, depending on the characteristics of your work.
3
Calculate the total and additional wages, including bonuses, deductions and other deductions, including deductions for social insurance and accident insurance.
4
Add up all the resulting amount – the cost of materials, depreciation, wages and deductions for social. insurance and take from this amount 20%. It will be your overhead costs.
5
From this amount, calculate 50% and take the sum for General expenses. Find out the total cost of adding all the amount received.
6
Add to the cost another 50% to get the planned savings. In General, you have come to the wholesale price. Increase it by another 50% and you will get the retail price. Also, don't forget about the VAT.
7
Keep in mind that all expenses you expect for a certain number of services provided over a period of time. To obtain the price of the service provided at a time, divide the total amount by the estimated quantity of such services over the estimated period of time.

Advice 8 : How to calculate the price of concrete products

The sales price for the concrete products must be calculated considering the expenses for production and sales. For each type of product to cost, which will be calculated all direct and indirect costs.
How to calculate the price of concrete products
Instruction
1
Calculate on the basis of technological maps the quantity of materials required for production of each type of product. You need to consider cement, sand, gravel, metal and other raw materials to be consumed in the production process of concrete products.
2
Calculate the cost of materials based on their purchase prices, it is necessary to consider the cost of shipping and warehousing raw materials. Calculate the depreciation expenses of fixed assets. They are calculated on the basis of hours of equipment operation and accounting data of the amount of monthly depreciation for this equipment.
3
Count the number of man-hours of work for each technological operation in the production of concrete products. Calculate the amount of wages. To do this, multiply the total number of received billable hours at the hourly rate of a worker's wages.
4
Calculate the amount of payroll of the employee (unified social tax and accident insurance), by multiplying the percentage levied on the amount of wages. Add up all the direct costs of production.
5
Calculate the production cost (planning and accounting price) concrete products by multiplying the total direct costs percentage of overhead costs, which should be designed and approved for this type of production. According to the obtained cost of production is accounted of finished products in the enterprise.
6
Calculate the total cost of concrete products, adding to the manufacturing cost General expenses. The percentage of General expenses for the calculation of prices for finished products should be approved at the enterprise.
7
Add to the total cost amount of expenditure on the development of products. By counting and summing all direct and indirect production costs, should be included in the price of the product the percentage of profits of the enterprise.
8
If the organization is a VAT payer, add to the resulting figure the amount of estimated tax. So, selling price of concrete products is designed. Would also be useful to study the market of concrete products and to compare the calculated prices with the price of concrete from competing firms.
Is the advice useful?
Search