Production Costs

• Labour, including payroll taxes and benefits
• Depreciation
• Interest on Loans
• Lease payments
• Utilities
• Transportation
• Operation and maintenance expenses
• Materials and other expenses
• Rent on buildings, plant, property, and/or equipment

Marketing Costs

• Salaries, including payroll taxes and benefits
• Promotional, advertising, and entertainment expenses
• Discounts on brokerage commissions

General and Administration Costs

• Salaries, including payroll taxes and benefits
• Accounting and finance costs
• Business and director insurance, taxes, and licenses
• Travel, telephone, postage, and supplies

Distribution Costs

• Packaging, boxing, and palletizing
• Warehousing
• Transportation

Source: Starting an Agricultural Marketing Cooperative. Center for Cooperatives, University of California, Davis