S.No.
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Elements
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Description
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1.
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Cost of goods
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Cost of Merchandize
Expenses incurred towards transportation
Taxes, duties levies etc.
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2.
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Expenses Incurred
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Fixed Expenses
Variable Expanses
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3.
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Fixed Expenses
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Expenses that do not vary with quantum of business
e.g., Shop rent, Head office costs etc.
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4.
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Variable Expenses
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Level of sales directly effects variable expenses.
e.g., Merchandise margins, product mix costs Their management either enhances or destroy profitability.
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