Understanding Variable Cost Behavior for Arts and Crafts Businesses
This article explains variable costs, which are costs that go up and down depending on how much arts and crafts inventory or products you sell. This includes your cost of goods sold, credit card fees, shipping costs and sales commissions you may pay to sales staff who rep your arts and crafts items.
From the email box: I have less than 50 crafts in my finished goods inventory, is there an easy way to keep track of my inventory? This is a question I get a lot. You have a smaller arts and crafts business or maybe a large one with few finished goods and you don't want to go through all the hoopla of tracking it with accounting software. This article explains a quick and easy way to handle this accounting task!
How to Prepare a Cost of Goods Sold for an Arts or Crafts Manufacturing Business
An arts or crafts manufacturer handcrafts the products sold directly to the consumer - for example at a craft show or through a website. A manufacturer can also sell on a larger scale to unrelated retail businesses like a craft boutique or art gallery. If you are an arts or crafts manufacturer, find out how to account for your expenses on your income statement.