business development plan examples
How do I calculate the cost of goods sold for a video game developer?
I am developing a business plan for a small game development company. I have read that most game development companies’ cost of goods sold is equal to the amortized development costs after the game is ready to be sold.
I cannot find any detailed examples of how this is done.
As far as I can tell, my only cost of goods would be the development costs and some licensing costs. But these are not variable with the number of units sold, which throws everything off!
Help! Is there anyone out there that has done this?
The only way to calculate the cost of goods sold is to take the total cost of production (development and licensing costs, packaging, etc.) and divide it by the number of units sold.
If you are trying to forecast the COGS you should take the total cost and divide it by the expected number of units sold.
Sample Internet Marketing Plan Video
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