Standard Costing

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Macola ES's Standard Costing (S/C) package helps you maintain standard, current and projected costs for both accounting and manufacturing management. Standard Costing is concerned with the calculation of standard costs, current costs and projected costs in order to establish product prices.

Important advantages of Standard Costing are:

• Standard cost changes can be identified quickly
• S/C package provides three sets of costs
• Provides costed routing sheets to detail the routing costs
• Reports for maintaining the Cost Master File for management planning

Standard Costing is a comprehensive and powerful tool for maintaining standard, current and projected costs for both accounting and manufacturing operations. Its unique features are ideal for helping you manage the planning and budgeting of your entire operation.

For manufactured items, Macola ES's S/C package maintains cost for items manufactured in Shop Floor Control (SFC) and Production Order Processing (POP). Total material and value-added costs for manufactured items can be easily determined based on the product structure as entered in the Bill of Materials (BOM) package. The value-added costs for manufactured items, labor, overhead and outside service costs, will be easily determined from the Standard Product Routing (SPR) package.

S/C lets you easily spot all standard cost changes quickly and helps you avoid deteriorating profit margins, without constantly re-evaluating the value of your inventory. The S/C package enables a single cost change, such as a change at one operation of a routing to automatically set up a series of cost updates. It greatly decreases clerical effort and assures consistency and accuracy of all cost changes. Any changes in the bill of material will also be reflected in the current cost of every sub-assembly and end-item.

Multiple costs
Macola ES's comprehensive Standard Costing package provides three sets of costs: beginning of the year standard cost (Standard), up-to-date cost figures (Current) and projected costs used for What-If Analysis.

Cost master file
At the center of the Macola ES S/C package is the Cost Master File. It contains a record for each inventory item. Each record contains the standard value-added cost; the total cost for material, labor and outside processing; landed and scrap costs; variable and fixed burden costs.

The current and standard amounts are maintained for each level in the BOM. A cost build-up accumulates material and value-added costs for all sub-assemblies and finished goods. For convenience you have the option to only build up costs for items that use components where costs have changed - either prior to a selected cut-off date or since the previous build-up.

Standard Costing provides you with the tools so your costs reflect your true manufacturing process.

Costed routing sheets
Costed routing sheets are provided to detail the routing costs associated with operations - including labor, outside processing, fixed burden and variable burden costs.

Costing reports
Macola ES's S/C provides a variety of comprehensive reports for maintaining the Cost

Master File for management planning, including:

• Cost Master list
• Costed Explosion reports
• Routing Cost variance report
• Cost of Sales report
• Cost of Inventory report
• Change To Inventory valuation report
• Item Cost Restandardization report
• Standard To Current log
• Missing or Zero Item Cost report
• Material Cost Variance report

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