While the costs associated with the purchase of raw materials, wages of workers producing a certain product, commissions paid to sellers, is fairly easy to include the cost of production and allow you to determine the profitability of sales, these expenses such as rent office space, spread on various goods is problematic.Costs of this kind are known as overhead, and they are usually deducted from the total income of the company, before it will be counted net profit.
However, this approach is from the perspective of modern management is not entirely correct.It may be that the goods which, according to standard calculations, the company brings the most revenue, in fact, turns out to be the most unprofitable.If a decision on the product policy of the company will be taken without the overhead of the results, to the surprise of control, it can be quite disastrous.
However, before you deal with that as such it may be necessary to determine the composition of overheads.In fact, it is largely curled on the nature of the enterprise, however, some of the traditional overhead can still be identified.It is, first of all, everything that is related to the cost of management, such as office rent, buying computers, salaries of managers and etc.In addition, here you can include depreciation of production equipment, the cost of storage of goods in stock, insurance, etc.As you know, the general logic is that overhead costs - are costs that can not be attributed directly to a particular product, according to the classic rules of accounting.
But is it really impossible to do?In fact, according to the latest trends in management overhead is not only possible but also necessary to try to distribute to various products from the assortment of the company.It's over, do it correctly it does not, therefore, for tax reporting this form of accounting will not go, but for internal use will be very effective.However, it will have to work a little.
All you need to do - is to try to determine what proportion of your overheads can be spread over different products.The easiest way offers to divide all costs, respectively, the working time spent by employees, directly producing product for its production.This method allows a few more accurately see the real value of the costs that the company bears for the production of one unit of a particular product, but the result is still quite accurate.
If you want to see significant numbers, then you have to analyze each of the varieties of overheads on the subject of product to which they can refer.Suppose it is - the costs associated with customer service.You can calculate the percentage, in relation to a product call the service buyers, multiply that percentage in the total amount and adding the resulting figures to the cost of each product.When it comes to wear and tear, you can carry out the separation of overhead costs in accordance with the volume of production.Salary marketers can be divided in accordance with the order on the promotion of any products directly to the market they serve.
on a similar principle, you can allocate all costs.The resulting outcome is definitely surprise you.Quite often outsiders products with high cost are, in fact, the most profitable commodity.Built its commodity policy on the principle of roll-call overhead allocation, you can achieve truly extraordinary results.
