This is a category that considers the expenses necessary for a company to operate on a daily basis. An example of this would be office rental or workshop rental.
Opportunity costs
This is not a very common type of cost , but it is sometimes necessary to consider it. It refers to the benefit that is given up when choosing one alternative over another. That is, if you keep the money in the bank, generating 2% interest, vs. if you leave it in cash, without any growth.
Sunk costs
These are expenses that have already been canada phone data made and cannot be recovered in the future; a very simple example is time.
Controllable costs
This is a classification by consumption and, as its name suggests, refers to those figures over which one has control. Bonuses, donations and increases to employees are examples of these.
Uncontrollable costs
They are exactly the opposite of the above. A good example could be advertising on Google , which varies depending on the value of the keywords at a given time.
I already have my cost structure, now what?
By making a cost structure , you will know how many products and/or how many sales you need to make to cover your costs, including salaries, wages, and capital to reinvest and continue growing your business.
The important thing is to understand how you can get that number of sales and when you will be able to sell them. You have two paths!
Investing in advertising : It will be important to analyze how many sales this investment in advertising generates and consider it as part of your variable costs.
Acquiring new customers for free: In this case, you will need to understand what efforts you need to make and how long it will take to sell a certain number of products per month to cover your expenses and continue growing your brand.