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’ - Costi