Recent Articles

Cost of Services Provided

Labor based organization where the costs of services provided include labor wages, benefits, taxes, workman’s compensation insurance. It often will include transportation costs for remote site services.

Carpet Cleaning Service – Margins and Expenses

03/27/2015

A very common small business in the service industry is the carpet cleaner.  Many owners of such businesses desire to know the margins and of course the associated operating expenses involved.  This article addresses these two questions and I’ll [...]

Hair Stylist Compensation Model

04/06/2014

One of the most fascinating business models is the hair salon industry.  Many salons are poorly managed and rarely generate adequate profits.  To make matters worse, the stylists are like professional sports players.  One week they are playing [...]

How is Cost of Goods Sold in Retail Determined?

02/16/2013

Each industry is different in determining costs of goods sold or cost of services rendered.  Retail uses two distinct methods to calculate costs of goods sold.  The first is called ‘Specific Identification’ whereby each item sold is [...]

What is ‘Cost of Goods Sold’?

12/20/2012

Simply put, ‘cost of goods sold’ equals the direct costs of materials, human resources, and equipment needed to produce the item sold.  However, this can be confusing because there are many marginal cost items that affect the real cost of [...]