Forums: Discussions for entrepreneurs and small business.

Hi all - I could use some help.. I'm trying to figure out my direct and indirect costs.

I'm having a product made.

1. During production, it's sent for safety testing. (additional coast)

2. Then the final product, loaded on its pallet, will be taken to the storage warehouse at the manufacturing facility. (small cost to transport pallet)

Voila! I'm ready to sell at this point.

3. There will also be a fixed monthly cost to store the pallet there as I work through the inventory.

 

Aside from having the product itself made, I can't really tell if the other items should be considered direct costs or not. These costs will happen every time the product batch is made. I could use some advice. 

thanks!

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