Costing in a nutshell

Product costing explained in plain language: what counts as a direct cost, what belongs in overhead, which selling expenses eat your margin, and how the pieces add up to a unit cost.

• Operating overhead expenses: your workspace and tools. Rent, electricity, machines, software licenses.
• What you provide: one client's job. Your hours, custom materials, travel.
• What you make: one item's pieces. Materials, packaging, assembly.
• Digital delivery: costs per user. Payment fees, hosting, app store cuts.
• To find customers: bringing new people in. Ads, promos, referral perks.