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P-AND-L-MANAGEMENT5 MIN READ

Sort costs by how they behave

Classify common P&L costs by behavior for CVP decisions.

Sort each cost by likely behavior for a short-run delivery-volume decision. Variable with each order Fixed in the relevant range Step cost at capacity threshold Ingredients used in each delivered meal Disposable delivery packaging per order Monthly store rent under the current lease Store manager salary for the existing site Second dispatcher required above 220 weekend orders Additional leased van required if in-house delivery expands to a new zone Payment processing fee charged as a percent of sales Existing ordering software subscription with unused capacity

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