COSTING YOUR GOODS AND

SERVICES
 WHAT ARE COSTS?

Every business has costs. Costs are all the money your business
spends to make and sell your products or services. Here are some
examples of costs:
· Salaries and wages to the employees are costs to the
business.
· Electricity for the lights, machines and other equipment is a
cost to the business.
· Raw materials bought to make into products are a cost to the
business.
WHAT IS COSTING?

Costing is the way you calculate the

total costs of making and selling a
product or providing a service. Many
businesses do not know all their costs
and therefore cannot do their costing
properly.
HOW CAN COSTING IMPROVE
YOUR BUSINESS?
 How can costing improve your business?

• Costing helps you to set prices.

• Costing helps you to reduce and control your
costs.
• Costing helps you to make better decisions
about your business.
• Costing helps you to plan for the future.