In production, there are costs that remain the same for hundreds and tens of thousands of dollars in profit. They do not depend on the volume of products released. These are called fixed costs. How do you calculate fixed costs?
Instructions
Step 1
Define a formula for calculating fixed costs. It calculates the fixed costs of all organizations. The formula will be equal to the ratio of all fixed costs to the total cost of works and services sold, multiplied by the basic income from the sale of works and services.
Step 2
Calculate all fixed costs. These include: advertising costs, both internal and external; administrative and management expenses, i.e. salaries of top managers, maintenance of official vehicles, maintenance of accounting departments, marketing, etc., the cost of depreciation of fixed assets, the cost of using various databases of information, for example, postal or accounting.
Step 3
Calculate in fixed assets the deductions for depreciation of fixed assets, such as land, capital expenditures for improving land, buildings, structures, transmission devices, machinery and equipment, etc. Do not forget about library funds, natural resources, rental items, as well as capital investments in objects that have not been commissioned.
Step 4
Calculate the total cost of the works and services sold. This will include proceeds from the main sale or from services provided, such as a hairdresser, and work performed, for example, from construction companies.
Step 5
Calculate the basic income from the sale of works and services. Basic income is the notional return for the month in value terms per unit of physical indicator. Please note that services related to “household” have a single physical indicator, and services of a “non-domestic” nature, for example, renting out housing and transporting passengers, have their own physical indicators.
Step 6
Plug this data into the formula and you get fixed costs.
