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. 1. Standard fixed cost
   2. Normal capacity