Självkostnad

Självkostnad is a term used primarily in Swedish accounting and economics to describe the total internal cost incurred by a firm to produce a good or service. It represents the sum of all direct and indirect costs the company absorbs in the process of creating a product, and it is often used as a benchmark for pricing decisions, profitability analysis, and cost control.

The calculation of självkostnad typically includes direct material costs, direct labor hours, and a portion of manufacturing overhead. Overhead is allocated using a systematic method such as activity-based costing, costing by machine hours, or linear cost formulas that reflect the way resources are consumed. In some industries, fixed costs such as plant depreciation, rent, and utilities are also incorporated into the självkostnad figure. What is excluded are marketing expenses, sales commissions, and any external financing costs, which are considered period costs or selling and administrative costs.

In practice, the självkostnad metric provides several management functions. First, it allows companies to set prices that cover internal costs and generate a target margin, thereby avoiding pricing below cost. Second, it reveals efficiency improvements; a decreasing självkostnad over time often signals reduced waste, better utilization, or economies of scale. Third, it is used in budgeting and forecasting, giving stakeholders a clear view of the minimum revenue required to cover production expenses.

Further, the självkostnad is compared with the market price to assess competitiveness. A product priced significantly above its självkostnad may enjoy high margins but risks losing market share; a price below självkostnad suggests unsustainability and necessitates adjustments in design, sourcing, or production methods.

Overall, självkostnad is a fundamental concept in Swedish business practice, aiding firms in aligning costs, pricing strategies, and long-term financial planning.