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Costing of Products

posted Jan 15, 2012 2:50 AM by Anantha Narayan   [ updated Feb 2, 2012 2:17 AM ]

This is a Crude Costing Formulae based on my Ideas which is called "Gut-Feel Thumb-Rule Methodology." Even Though i am probably the only follower of this popular System, I am sure it is worth a casual Look.

Costing of Products - delabs and dapj


Sales Qty per/month Type Costing
1 - 4
Custom Design
RM * 4.8 = SP
5 - 15
Pilot Production
RM * 3.2 = SP
16 - 100 Slow Moving
RM * 2.2 = SP
101 - 1000 Manufacturing
RM * 1.6 = SP
Raw Material Cost 45
Production Cost 15
Servicing Cost 10
Marketing Cost 10
Research 10
Reserves 05
Employee Fund 05
Grand Total 100

RM - Raw Material Cost
SP - Selling Price to Distributor

Reserves are for Dry days, Employee Fund is to reduce Attrition and Layoff.

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