Join Rudolph Rosenberg for an in-depth discussion in this video Calculating standard costs, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…So, in the previous demonstration, we left it at categorizing our costs into…different families so that we can then go into the next step which we'll cover now.…Which take each of those cost families, and allocates them…on the different products with the objective of calculating standard costs.…So, where we left it was to have a pivot table that has all those costs the way…you can see them right now.…What I'll do now, is present to you a model or…a table that I personally use to calculate standard costs.…
And this is on the tab called, Cost Allocation Blank.…It's called Cost Allocation Blank because there is no information in it and…it's just a model that you can use to do…your cost distribution with the object of calculating standard costs.…What you can see in this table is first from a column perspective,…you have a column for each of your products.…So here I have five columns, but you can have as many columns as you deem…necessary, and in terms of rows, you have three rows for every cost that you have.…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
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- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses