What Does Current Cost of Supplies Mean?
Current cost of supplies (CCS) refers to the net income of a company after adjusting for the increase (or decrease) in expenses over the reporting period. Using the current cost of supplies figure can be advantageous to the straight net income figure for any line of business where expenses to manufacture or produce a product vary greatly from reporting period to reporting period. Current cost of supplies (CCS) is typically used by commodity reliant businesses. Current cost of supplies (CCS) is often used in conjunction with the term CCS earnings.
Understanding Current Cost of Supplies (CCS)
Current cost of supplies (CCS) refers to an adjusted net income figure that takes into account the increase or decrease in company expenses over the company's reporting period. This adjusted figure is helpful in cases where the prices associated with manufacturing or producing a company's product change significantly between reporting periods. The term is often used in the energy industry because the price of oil can change so much from one year to the next.