Financial Reporting Guide - SCO

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Cost of Sales

Cost of sales is split in

  • variable (proportional) costs
  • fixed (non-proportional) costs, and
  • depreciation costs

Note that due to the use of Standard cost at WP1 companies, not all headings apply for PF1 companies: See table in HERE

I. General principles

  1. Regulatory framework and definitions
  2. Variable selling expenses
  3. Proportional costs of sales
  4. Non-proportional costs of sales
  5. Other costs on activities
  6. Miscellaneous production

II. Specific points

  1. Example of the calculation of non-proportional production costs for a multi-products workshop
  2. Valuation of by-products, waste, and recyclable products
  3. WCM procedure to calculate OEE
  4. Standard costing
    1. Standard fixed cost
    2. Normal capacity

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