Product Costing Tool Extraordinaire

posted in: Get into business, Get the money | 0

Using the Tool

To use this product costing tool, some quick guidelines will make it easy:
1) Answer the questions across the top in chronological order for each ingredient.

2) Only edit the cells with red text. The other cells are formulas!

3) The amount of ingredient that you actually put into the recipe must be in the same unit as the amount you purchase. (i.e. pounds for pounds / ounces for ounces)

Download the Tool

Excel Version

Numbers Version on iCloud (download only)

A caveat: we didn’t include labor as an “ingredient” cost, because most businesses we work with are sole owner/makers. They are seeking more like a part-time or full-time salary, and much of their time is spent doing other business things, apart from making the product. Therefore, we consider labor an indirect cost and think it is better accounted for in that way.  However, you are welcome to include the labor cost to make your product as an “ingredient.” If you pay someone to assist with making your product, you should definitely include their wages as an ingredient cost. Also, if you spend significant time making one single product, you should factor your time into your product cost.

Pretty picture of the Product Costing Tool