Cost Code Defined

(Note: This policy is taken from LHC PL 18 May 1994 How to Write a Sales Invoice)

COST CODE

A code is used to list costs on invoices, some in-store communications, and price tags so the profit can be determined, yet not become known to the customer. The code is to be kept confidential! It is as follows:

An “X” is used to repeat the same number immediately preceding.

Example: $3255.00 would be coded as “NAOXEX”, where the first X repeats the 5 and the second X repeats the 0. All costs, minimums, etc., are written in this code, NEVER in regular numbers.

Price tags generated by computer programs usually show the retail price in regular numbers, with the minimum selling price in Cost Code right below. The computer tags do not use X to repeat digits, and the letters are not capitalized. The computer prints out the code sometimes with a decimal point, or may omit the cents entirely.

Example: $3255.00 listed as the minimum purchase price on a price tag may be printed as “naoo.ee”, “naoo.e”, or “naoo”.

All staff members are required to memorize this cost code. It is not to be written down anywhere but on this policy.