Cost of Doing Business - Detail Calculator
Cost of Doing Business - Detail Calculator Explained:
(a) What is this? This calculator tells determines your total expenses, or the cost of doing business. It is defined as a percentage of turnover.
(b) What does it tell me? What your total costs are as a percentage of turnover. You will need to determine if the costs are increasing or decreasing.
(c) Why should I use it? Firstly to determine where the expenses are incurred in the business. Secondly to, monitor costs to see if they are increasing or decreasing. There is no issue with costs going up if the costs are increasing at a decreasing rate and Net Profit is increasing. This calculator has all the major expected elements of expenses for you to assess.
(d) Caution: This measure assumes you are including ALL of your costs. Also, while watching the costs is a smart thing to do, you MUST keep a close eye on the Net Profit as that is actually how much money you make. This calculator doesn't tell you if you costs are too high or not, it just tells you what the percentage of CODB is. You use the calculator at your own risk.