Official cost calculated too late
When the official cost is calculated in one go at month-end, pricing and margin decisions are made on a cost that is weeks old.
Mind Cost · Cost Management
Two sides of cost: what you buy and what you make
Calculate the official cost live and by product. Track the cost of what your bakery, deli and kitchen produce by recipe.
What Is Mind Cost?
Mind Cost is the product that calculates, for grocery chains, the cost of purchased goods and of what is produced in the bakery, deli or central kitchen on one data model: it compares weighted average with last purchase cost, and opens recipe cost across shrinkage, labour and overhead layers.
Product Cost
Mind Cost is the module that keeps weighted average cost and last purchase cost as separate fields in the same table and breaks the gap between them down to batch, expense line and currency effect.
Production Cost
Mind Cost is the module that calculates recipe-based cost for a grocery chain's bakery, deli, butcher and kitchen products across raw material, shrinkage, labour and overhead layers, and shows the variance between standard and actual split into quantity and price.
Where Cost Gets Stuck
Discounts look at the wrong cost
A discount decision based on average cost carries a cheap past purchase into today's price.
Real expenses do not reach the product
When freight, customs and allocated purchase costs do not reach the product, category profitability looks better than it is.
What Will You Gain?
Accurate, live product cost lets you set the price and the gross margin correctly. The small gain on each unit sold grows once it is multiplied by volume.
Enter your own figures and the calculation updates as you type.
6.6× its cost · pays for itself within 55 days
Your annual gain1,200,000 ₺assuming a gain of 1 ₺ per unit sold
Annual cost of the product179,988 ₺smallest tier · monthly price × 12
After the cost is deducted1,020,012 ₺gain − product cost
Why Mind Cost?
- 01
Moving average, not period end
Weighted average cost is recalculated at every goods receipt; there is no bulk calculation at month end.
- 02
Two costs side by side
Average and last purchase cost are kept in separate fields and shown on the same row, so a pricing decision knows which one it is using.
- 03
Recipe and expense, one model
Raw material, shrinkage, labour and overhead tiers land in one calculation; standard-versus-actual variance becomes visible.
What Mind Cost Does
Product Cost
Two methods side by side
Average cost and last purchase cost are shown on the same row. The gap in value and in percentage is calculated.
Gap breakdown
The gap is separated into purchase batch, expense line and currency effect. Each line shows how much it contributed.
Landed cost allocation
Freight, customs, insurance and port charges are allocated to products by value, weight or volume key.
Margin and profitability
Gross margin, net margin and post-discount margin are calculated separately for each costing method.
Cost deviation alert
When the last purchase cost rises above a set threshold over the average cost, the pricing owner gets an alert.
Cost trace
Every cost value can be traced back to the invoice, the date and the calculation step it came from.
Production Cost
Multi-level bill of materials
Recipes containing semi-finished goods such as dough, filling or sauce open level by level. When a sub-recipe's cost changes, the parent product updates on its own.
Actual production cost
The real raw material, time and shrinkage consumed on the production order are recorded; actual cost is calculated from those records.
Standard-actual variance
The variance is split into quantity variance and price variance. Both open down to the raw material line.
Labour and overhead allocation
Expenses are allocated to products by labour time, oven hours or units produced.
Shrinkage monitoring
The shrinkage rate is measured per production order, shift and production area (bakery, deli, kitchen); crossing a threshold raises an alert for the section lead.
Recipe product profitability
Recipe cost is matched with the shelf and counter price; contribution margin is calculated per product and per recipe.
What You Gain
Official cost, live
Weighted average cost is recalculated with every receipt; nobody waits for a month-end batch.
Discount with the real profit in view
Gross margin, net margin and post-discount margin are calculated separately under both cost methods, so a discount is decided with the real profit in view.
Manage all your expenses
Freight, customs, insurance, labour and overhead are allocated to the product; every cost value can be traced to the invoice it came from.
Pricing looks at the right cost
When last purchase cost crosses a threshold, the pricing owner gets an alert.
Who It Is For
For Grocery Chains
Last purchase cost is tracked apart; freight, customs and exchange costs are allocated to imports.
Pricing
For how many branches and users?
Included in the package
- Product Cost
- Production Cost
The figure is a starting point for a conversation, not a final price. Scope is settled in that conversation; prices exclude VAT.
See Mind Cost working with your own data.
Common Questions
Which costing method do you use?
Both. Weighted average cost describes the past and is used for stock valuation and period profitability; last purchase cost is the replacement cost and is used for pricing and purchasing decisions. The two figures sit side by side with the gap between them in its own column.
How do freight and customs enter the cost?
Costs beyond the purchase price are allocated into the unit cost as landed cost. The allocation key is defined, and the gap breakdown report shows on its own line how much each expense line moved the cost.
Can a past period's cost change later?
Cost corrections are never posted backwards silently; they are written as a separate movement type, with the period they belong to and the date they were processed held in two different fields. So when last month's report is re-run, the reason for the difference can be seen line by line.
Does changing a recipe corrupt past costs?
No. Every version of the recipe is retained and past production is valued with the version in force at the time. A recipe change made today does not alter last month's cost card.
How is shrinkage handled?
The shrinkage defined in the recipe and the shrinkage that actually occurred on the production order are kept apart, and the difference is reported by production area, shift and product. That difference is the earliest cost-side indicator of a process problem.