5 Net sales and costs (continuing operations)

Fulfillment of the performance obligations related to goods sold is measured using the commercial shipment terms as an indicator for the transfer of control. Fulfillment of the performance obligations for services rendered is identified according to the individual contract. The payment terms are determined per business segment on a customer basis. DSM has neither specific obligations for returns or refunds, nor specific warranties or other related obligations.

Total costs

In 2021, total operating costs amounted to €8.2 billion, €0.8 billion higher than in 2020, when these costs stood at €7.4 billion. Total operating costs in 2021 included Cost of sales amounting to €6.0 billion (2020: €5.3 billion); gross margin as a percentage of net sales stood at 34% (2020: 34%).