Product Level profitbility

D stands for Driver for cost

D1 : Direct Variable cost, Product level
D2 : Indirect variable cost
D3 : Semi Variable cost
D4 : Fixed Cost

Cost Allocation
Revenue Product Wise
D1

COGS

Incentive / Support (channel

wise allocation)

TWS Airdopes 131

Allocation will be based on GL and Cost centre Logic

 Cost Allocation
D2 D3 D4 EBITDA
Warehouse Rent, Maintenance
Warranty cost Corporate Salary
cost
Outbound Freight / Transportation
Warehouse Team salary Professional fees
cost(channel wise allocation)

Direct Marketing cost like D2C, Google D2C, Offline team, E Commerce
G&A
Pay, Facebook, Phone Pe etc Team salary

Product Specific marketing cost

Prov for Inventory R&D Cost
(advertisement, brand)
Prov for Doubtful
general marketing cost
 Product Level profitability
D stands for Driver for cost
D1 : Direct Product Specific Cost
D2 : Controllable cost
D3 : Fixed Cost

Cost Allocation
Channel Revenue Product Wise EBITDA
D1 D1 Requirement. D2 D2 Requirement D3 D3 Requirement

The information available at certain

product level, channel level and
All freight and other breakups
product level, same needs to be
COGS : Breakdown into can be added to COPA. which Incentive / Support (channel wise
capture in COPA report.
Basic Cost will match with the purchase allocation) AZ information available at These are the fixed cost need to
Custom Duty, SWS GL. product level, and others at category book at cost center.
Data updated at material group level, Rent, Maintenance cost
Air shipment level Later on cost needs be allocated
later on needs to be allocated to their
Sea Shipment But business required the AZ, FK Marketing cost available at to based on revene.
product based on revenue.
Other Clearance Charges actual COGS break up. category level

AZ TWS Airdopes 131

Data needs to capture at
Outbound Freight /
profitablity segment level. Direct Marketing cost for D2C, Offline Data needs to capture at cost center Corporate, Warehouse Salary
Transportation cost(channel
Later on needs to be Google Pay, Facebook, Phone Pe etc level/channel level. Cost
wise allocation)
allocated on revenue ratio's.

Data needs to capture at cost Data needs to capture at profitablity

Product Specific marketing cost
Warranty cost center/profitablity segment segment level, later on need to allocat Brand general marketing cost
(advertisement, brand)
level the cost based on revenue.

Data needs to capture at cost center

R&D Cost, Professional fees,
Channel Specific Salary Cost level. Later on cost needs to be
G&A, other expenses,
allocated on product revenue basis.

Prov for Doubtful, Scrap

Allocation will be based on GL, Channel and Cost centre Logic

Revenue Breakup
Gross revenue
Sales retrun
GST
Net revenue

Channel margins / Discount