Articles on: TrueProfit

How to manage Variable Costs

Similar to Fixed Costs, Variable Costs are inconstant expenses that your business may incur during operation.

In TrueProfit, whereas Fixed Costs are set up by a predetermined value, Variable Costs are dependable value which go with formulas.

Think about this: if you have to pay 5 percent of your revenue as a commission, then this expense is a variable cost.

With TrueProfit, you can now add and adjust Variable Costs in the Custom Spend page.

How to add new variable costs

Go to Calculation > Custom Spend > Variable Costs > New Cost.

There you can set up relevant information including Name and Formula (compulsory), Starting and Ending Dates.

Currently, in the Formula section, you see a dropdown menu with formulas that link to Revenue, Profit, Facebook Ad, Google Ad and Order. Simply put in a value to determine how you would like your variable cost to be calculated.

For example, if you outsource your Facebook Ad Campaign to an agency, and they charge you 10 percent of Facebook Ad Spend, then just drop down the menu and select % Facebook, enter into the box the value (10).

Updated on: 09/09/2022

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