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Product Costing..
In a stable manufacturing environment with minimal variation of costs, it's fairly easy to provide a reasonable estimate of product profitability using standard costing. Too bad it doesn't work that way in the real world. Your business environment is unpredictable and reactive. You need to be able to accurately capture the costs that go into everything that lead up to getting your product to your customer. And unforeseen circumstances are not just risks but harsh realities.
Product costing and manufacturing accounting reporting systems manage and track the very essence of why you are in business. They should:
- Give you the choice and flexibility of using numerous costing options such as standard costing, actual costing, weight average, last in, etc.
- Allow you to track and react to periodic and long-term cost trends
- Be flexible enough to manage and control costs in a "product-of-one" or "to-order" type of business
- Maintain acceptable margins based upon who is buying the product, what goes into it, and where it was manufactured
- Operate singly in a multi-mode (process, discrete, repetitive, etc.) manufacturing environment
The product costing and Manufacturing Accounting solution allows you to modify the cost accounting method for a product at a moments notice. You get product costing and accounting at the level and precision you need to improve process performance and effectively manage procurement costs.
Key Features:
- Multiple modes -- Cost tracking by product and plant/warehouse,
with costs calculated based on a standard, weighted average
or actual costing methodology
- Cost Buckets -- Costs summarized into four primary buckets
(material, labor, fixed overhead, variable overhead),
with each primary bucket supported by user-defined cost
elements as required
- Automatic Cost Calculation -- Automatic calculation
of costs for manufactured products based on current production
BOM, routing and associated work center and labor rates
- Standard vs. Actual Cost comparison -- Visibility of
frozen standard, current, future and last standard costs
for all products under a standard cost methodology
- Cost for specific jobs -- True standard cost support
for customer specified make-to-order products, supporting
repeat orders and the tracking of material transfers between
plants or warehouses
- Profitability of Jobs -- Real-time cost calculations
for customer specified make-to-order products to provide
margin visibility and cost-plus pricing support during
quote and order entry processing
- Manufacturing Variance -- Production variance tracking
based on material substitutions, labor or operational
efficiency variations
- Scrap Computations -- Accurate scrap valuation based
on incremental product cost calculations and associated
production operation where material was reported scrapped
- Flexible Reporting -- Reporting of sales analysis and
order margins based on standard/average/actual and/or
current costs
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