Further we will calculate holding cost ordering cost and the number of orders per year and combine ordering and holding costs at economic order quantity. Productivity Output Input There are so many different kinds of production processes and all these production processes have peculiar inputs which differ from one process to the other. The equation of Cobb-Douglas production function is as follows.
D a b c.
Formula to Calculate Cost of Goods Sold COGS Cost of Goods Sold Formula COGS calculates all the direct costs which are associated with the production of the various goods sold by the company and it is calculated by adding the beginning inventory of the company with the total purchases during the year and then subtracting the value of the closing inventory of the company from it. General and administrative expenses are not directly attributable to the production of goods and services and include audit fees legal fees rent and utilities. The equation of Cobb-Douglas production function is as follows. At the 1000-unit production level the total cost of the production is.