University of Michigan OM
Professor R. Eugene Goodson
Cost of Sales Determination
Table 4
|
COST CATEGORIES |
METRICS |
COST PER YEAR |
| Facilities |
Total area & cost per unit area |
|
| Equipment |
Machine inventory & age |
|
| Production personnel |
Number, basic wages & benefits |
|
| Salaried personnel |
Number, average salary & benefits |
|
| Non-direct material |
Total cost |
|
| Subcontracting |
Estimated |
|
| Insurance, taxes, etc. |
Local comparisons |
|
| Utilities |
Estimated use & local rates |
|
| Value added by plant |
Period cost |
|
| Material cost % |
Period cost |
|
|
TOTAL COS |
Yearly plant COS |
|
|
Total yearly production |
Yearly unit production |
|
|
UNIT COS |
Cost per unit |
|
|
COS as % of Sales |
Gross margin |