System Overview: Product Costing
Product Costing - Module Overview
- Costing is a generic system. It is completely integrated with basic transactions of rest all modules for the purpose of data capture so that there is assured reconciliation.
- Product-costing calculation based on captured data can be completely customized with diverse methods for apportioning costs over individual products or batches.
- The costing structure assumes typical scenario of manufacturing company where cost components of a product can be broadly divided into:
-Conversion costs (manufacturing costs)
-Post manufacturing costs
-Segregation of individual cost components
-Head-wise reporting for products and batches on standard costs, actual costs, and contribution
-A way to relate sensitivity of ‘components of product cost’ to ‘cost of resources’. This is to assess individual / combined impact on product costs and heads because of things like ‘5% rise in wages’, ‘10% increase in power costs’, or ‘2% reduction in material cost’
- Costing module also integrates with project management module that allows definition, budgeting, and control of project-wise and activity-wise costs.
- Variance reporting gives variance of standard costs versus actual costs.
Products Costing - Flow Diagram