the amount covered (railways), also gross profit, is a term from the economical cost calculation. The amount covered (I) is that amount, which a product carries out for covering the fixed costs and thus obtaining the net profit. It becomes by difference of proceeds with that variable costs determines, which were released directly by the product.
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to calculation of amount covered
the calculation of amount covered is an instrument of the direct sectional cost accounting, with that the fulls costs of a product or a business model into direct costs caused by productionand indirect (fixes) costs to be divided. The determination of the amount covered takes place via two steps:
- 1. When first all costs become seized, which are caused by the product or project, which can be added to it thus directly. In the industrial enterprise they agree usually with direct costsand direct costs are called. Direct costs are for example number of items-dependent personnel expenditure, material direct costs or also special occupation-dependent writings-off; one recognizes it thus by the fact that they arise even if the regarded product is produced.
- 2. The direct costs are subtracted from the net turnover sum. ThatResult is the amount covered. With the amount covered it concerns therefore the portion of proceeds, which stand for the covering of the indirect costs for order. Each product, which exhibits a positive amount covered, makes a positive contribution to the operating result. The relationship from amount covered to conversion becomes asAmount covered set designates.
the complete cost accounting stands for methods contrary to this method of accounting of cost, which makes an effective cost registration possible . This is characterized by a complete cost classification, whereby within the indirect range average costs are assigned in particular.
The criterion effectively refers to the principle: Addition sofar as possible. All not allocatable costs (e.g. ) Must be covered for space care portion of the job x by the amount covered.
In the start time the direct costs applied for the calculation of amount covered as price lower bound. This simple aspect led at Einproduktbetrieben, e.g. Steel industry, to ruinous price competition. In enterprises with more product-spreadingMischkalkulation with this view entire-follow endangered, e.g. Microsoft with products strengthened like the Internet Explorer, which supplies neither an amount covered nor its variable costs gained, the paragraph of its cash Cows.
thus calculation of amount covered (mathematical
) are the costs linear (model) apply the following possibilities the amount covered to calculate:
- Proceeds - variable costs (proceeds = Preis*Stückzahl)
- piece amount covered (railways) * number of items (piece amount covered = price (p) - variable unit cost prices (kv) (if linear costs))
- Operating result + fixed costs
the amount covered helps to adjust the lack the complete cost accounting which result from the consideration of the fixed costs. One differentiates however also between the absolute and relative railways. The absolute railways considers excluding net proceeds of sale minus the variable unit cost prices. The relative railwaysbeyond that still deals with the capacity of the enterprise. There is a bottleneck range in the enterprise, then by the relative railways an order of rank is formed, which seizes exactly, which product contributes despite bottleneck at the most effective to the covering of the fixed costs.
- Direct Costing (single-step calculation of amount covered)
- fixed costing hitting a corner calculation (multi-level calculation of amount covered)
- product result
- unit cost prices
- complete cost accounting
see also: Collection of formulae economics