6 – Functional costs
Under the cost-of-sales method, functional costs incurred by the operating functions are determined on the basis of cost center accounting. The functional costs particularly contain the personnel costs, depreciation and amortization accumulated on the underlying ﬁnal cost centers as well as allocated costs within the cost accounting cycle. Operating expenses that cannot be allocated to the functional costs are reported as other operating expenses.
Cost of sales
Cost of sales includes all production and purchase costs of the company’s own products as well as merchandise which has been sold in the period, particularly plant, energy and personnel costs.
Selling expenses particularly include marketing and advertising costs, freight costs, packaging costs, distribution management costs, commissions, and licensing costs.
General and administrative expenses
General and administrative expenses primarily include the costs of the central units, the costs of managing business units and divisions, and costs of general management, the Board of Executive Directors and the Supervisory Board.
Research and development expenses
Research and development expenses include the costs resulting from research projects as well as the necessary license fees for research activities.