Cost standard system updating
After examining characteristics of the new manufacturing environment and benefits of upgrading the cost system, ways to update the traditional standard cost system are discussed.Revisions include a unique input-output method of variance analysis, specific metrics related to manufacturing performance, ways to identify cost drivers, and use of dynamic standards.
-Maintain parameters different Tabs like Control, Qty Structure, Addictive Cost, Assignment and Misc.-Valuation Date-Date on which the materials and activities in a cost estimate are valuated. ( Usually PP functionality) Screenshot 9 – A routing shows operations in a sequence. Product costing, capacity planning, Refer screenshot 3 Cost Internal Activity (E) comes from this settings.We will understand more detail in my next part about assigning work center, activity and activity planning.How will standard cost be useful for calculating standard selling price. In this example, we will take three elements of cost.
i will update the document as n when some more points needs to be included .