The business clarity series · Video 06
That $100 Product Cost More Than $100
That one hundred dollar product may cost more than one hundred dollars to get onto your shelf.
0:35 · English narration · Captions included in the video
Full transcript
That one hundred dollar product may cost more than one hundred dollars to get onto your shelf.
In this fictional example, add twenty dollars of freight and ten dollars of other appropriate allocated purchase costs.
The resulting cost is one hundred thirty dollars. Which costs belong in inventory depends on your circumstances and accounting policy.
Sell it for one hundred eighty dollars, and the example gross profit is fifty dollars, before overhead and other expenses.
Use YourAI Ledger's product cost resources to ask better pricing questions. Explore more at YourAI Ledger dot com.
Illustrated educational overview. Examples and amounts are fictional where shown. Confirm accounting and tax decisions with a qualified professional.