Indeed, there are substantial differences between the two types of company.
Not having the automatic production of thousands of products, the selling price should be calculated with some modifications.
First of all, we compare the various types of farm and the different billings and productions.
Companies have a craft production, usually manual, typical products and details. The processing of this type of product is slower than the automatic machining or also called "in production".
There are also companies that never produce and sell the finished product, as for example wholesalers or retailers.
Finally there are companies that do not produce material goods, these are the service companies.
In the first case, that of handicraft businesses, it is necessary to use some tricks. First of all it needs to add all the individual costs of the product, for example if they have to build a Mobile it needs to add the cost of the wood used, the screws or hinges; whether it will be a dress it needs to add the cost of the fabric of the wire, the zip or buttons used (exclusively the portion used not the warehouse) and so go on. To this will be added the cost of labor, ie the cost of the work of the craftsman (usually the craftsman gives an average value of his work for which it will be calculated each hour worked to not fail the craftsman must calculate the hourly wage by contributions and to pay taxes to the state).
Then the calculation should be carried out in this way:
Cm = Costo of material Cl = Cost of labor Sp = selling price
C = cost T = tax n = number of definition
Cm = C1 + C2 + C3 + ... Cn
Cl = hourly wage + (T1 + T2 + T3 + ...Tn)/n
Sp = Cm + Cl
It's clear that the cost increases compared to an automatic production.
In the second case, you must make some changes to the previous calculation; in fact, for both the craftsmen for both companies not producing the calculation is adjusted if there are workers hired.
In this case, the calculation will be:
Cm = Cost the product without VAT (if artisan consider the calculation above written)
C = cost n= number definite Sp = selling price
C = (C1 + C2 + C3 + ...Cn)/n ( n this case must be taken into account the amount of the cost of the employee as the article "The economic equilibrium in the management of the company", on this blog).
Sp = Cm + C
The last case is the most controversial and difficult to calculate, not so much for the calculation in itself, but for the calculation of the cost of the service.
How do you know what is a service?
The answer is simple as a little enigmatic as it enhances the market.
Here are some examples, pay TV, up to that figure would you pay monthly? 20-30 - €? € 150?
If the market, that you choose the service is not worth the amount proposed not you purchase, the company will not fail to lower the price. No, it will lower down to zero, otherwise it would have no revenue.
So, once the company decided the value of each service will add to the cost as the previous calculation.
Rashna