Product Cost Calculation Module |
 |
The Product Cost Calculation Module integrates this
functionality and also considers these variables while
determining production costs. After product has been
configured and bill of materials components and
routing steps are identified, further calculations can be
performed based on these identifications.
For all activity types, cost centers are identified, and
unit cost data (both fixed and variable) is provided;
accordingly, all stages of production are evaluated
based on the current feedback that is received.
Evaluations are performed after current unit cost
values are calculated. The Product Cost Calculation
Module is able to perform all valid evaluations as a
result of its advanced integration with the Cost
Accounting Module, including Cost Types, Cost Centers
and Cost Unit analysis features.
Estimated cost calculations are performed based on
records created for planning (based on bill of materials
and routing information). On the other hand, real cost
calculations are associated with absolute data such as
actual quantity of material used, and the production
time realized for the designated activity types.
Furthermore, specialized costs such as those incurred
during contract manufacturing activities, are reflected
to real costs after receiving feedback from the CANIAS
ERP Production Management module.
Explicit comparisons between estimated costs and
realized costs are possible. For sustained differences
between estimated costs and realized costs, realized
production cost data may be recorded as the starting
point of the next phase of the estimated cost
calculation process.
Keeping estimated and realized costs in line
The CANIAS ERP Product Cost Calculation Module
is comprised of features that are critical in achieving
an integrated cost control for the enterprise. The
module supplies product cost data that is necessary
for the sales function and for the strategic guidance of the organization. Businesses can continuously optimize
their operations by attempting to bridge together
estimated and realized costs.
Comparisons provided within the CANIAS ERP Product
Cost Calculation Module for estimated costs, ongoing
production costs and realized costs allows such
continuous optimization to be achieved. With CANIAS
Cost Accounting, all costs can be transparently
calculated and evaluated.
Integrated cost control, improved profitability
Unrecognized costs result in loss of organizational
resources and adversely affects business growth
prospects. Getting cost factors under control will help in
achieving improved profitability. The Product Cost
Calculation Module, together with the Cost Accounting
module, facilitates accurate cost analysis and control,
and is an indispensable tool in ensuring an
organization's economic well being.
|
printable-version
