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Costs in a company on watch

26 November 2008 - 22:17


costs in a company of services

When one is a company service, the usual thing is to only denominate costs to the costs incurred the benefit of the service.


These costs are conformed by the following elements:


Costs of diverse Provisions

Costs conformed by the purchases that the company realizes to be able to offer to give the service.


Costs of Manpower by the service

Costs conformed by the pays of the workers who offer the service.


Indirect costs

Costs conformed by elements that take part indirectly in the benefit of the service, such as: depreciation, energy, water, telephone, rents, maintenance, repairs, etc.


As we have seen previously, the accounting of costs does not have a method or standard system, but the company adapts the method or system that more is suitable according to its needs or objectives to him.


We see next an example of how to apply the accounting of costs in a company of services:


We suppose that in our repair shop of cars they ask to repair a car to us that presents/displays a shock in the right side, besides a breakage of the light, the costs are:

  • Light: $50
  • Putty: $5
  • Weld: $15
  • Manpower $25

How much we must receive by the service to be able to gain 30%?


Total costs 95 (70 + 25)
30% utility 28.5
Sale price $123.5



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Related contents:

  1. Costs in an industrial company
  2. Costs in a marketing company
  3. The accounting of costs


12 Commentaries for “Costs in a company on watch”

  1. Herman:

    Gustaria to know to me that method is but the aporpiado one to use in a company that:

    *Compra and sells heavy machinery
    *Renta heavy machinery
    *Presta service of repair of this machinery.

    My question is: It is necessary to use a system of I pay for different for each activity? , or to use the same system to determine the costs of the 3 activities…
    of being thus. That systems of I pay for recomendaria to use?

    I appreciate its attention…

  2. Andrea:

    I need information the costs of a company of property transport and overheads. very good the article. Many Gacias!

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