Costing and Pricing

If you work in bookkeeping or accounts or are a small business
owner and need to know how to charge out time for staff, how to
calculate profit on a job, or project profit in the next year’s turnover,
this course is for you.

Similarly, small business owners may find this particularly useful.
For example if you’re a garage owner who needs to cost out parts
and labour; a wholesaler struggling to make profit due to squeezes
on margins; or a manufacturer trying to find the optimum price for
their products, this course can help.

This programme has 6 hours of learning activity with flexible study options to fit with your lifestyle and practical assignments that can be applied to your business.

This is a very hands on, practical course in which we deal with real
scenarios and help demystify some of the complexities around
costing and pricing, so you get the best possible results.

We help you see how to be really focused on working smarter to
generate more profit.

Part One:

• What to consider when pricing a product, factors which affect the profitability of a business. 
• Common price-setting strategies, factors which influence the customer’s decision to buy.
• Ways to check that the price is right, how increasing or decreasing selling price affects profit, 
• Ways to market and sell products, 
• Defining direct costs and indirect costs, recovering costs.

Part Two:

• Examples of a service business, 
• Identifying overheads of a typical service business, 
• Calculating a suitable hourly rate, 
• Defining fixed costs, variable costs and semi-variable costs,
• Understanding the break-even point on a graph, formula to calculate the break-even point, 
• Limitations of break-even analysis.

Part Three:

• What ‘contribution’ is and how it is calculated, how fixed costs, variable costs, selling price and profit interact, 
• Using Excel to carry out appropriate calculations, 
• How contribution theory can help to make business decisions,
• Setting out and interpreting a marginal cost statement,
• Understanding what is meant by ‘absorption costing’.