Cost Accounting Module |
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Cost units accounting for visibility into expenses
The CANIAS ERP cost unit accounting module is used to
determine where costs are being incurred. Normally, this
is a specific calculation that determines production costs
after completion of cost allocation. Due to the high level of
integration, it is possible to identify direct costs and
overhead rates using cost centers accounting, and access
this data directly in cost unit accounting. Alternatively,
cost rates and schemata of either activity-based
accounting or conventional overhead calculations, or a
combination of the two can be used. The module also
offers product costing (costs per cost unit). Required
calculation tables can be specified in an unrestricted
manner, and estimated costs, ongoing costs, and actual
costs can be determined.
The CANIAS ERP Cost Accounting Module also allows for
the computation of unit activity costs based on planned
values. Using this feature, each activity is analyzed on a
cost center basis and calculations are performed according
to planned capacities. These calculations may be repeated
and compared with the mentioned data values.
Cost control mechanisms for accurate cost analysis
Revenue and liquidity information alone does not provide
clear indication of business profitability. However, using
cost accounting and related concept of productivity (profit
and loss tables), it is possible to obtain the information
required for effective planning, and in turn derive
forecasts for costs and income.
Cost accounting determines productivity for overall
organization, its departments and for the phases of
production. It also assists in pricing, cost planning and
profitability calculations. Price pressures due to competition and the price inflation of required goods also
increases the significance of the availability of these
control mechanisms; they make possible precise
calculations and accurate analysis of costs, while
determining competitive pricing policies.
Delivering visibility for sound decision making
Since most business processes are accompanied with
data on the flow of finances and goods, it is imperative
that this data is recorded and analyzed for accurate
financial information. The implementation of cost
accounting, with all of the associated features, is a
necessity for all departments within an organization to
ensure cost visibility and accountability. The Cost
Accounting Module delivers all functionalities necessary
for cost identification, proper allocation and the
associated control mechanisms, guaranteeing accurate
cost and profitability information for better decision
making.
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