Difference between revisions of "33. Costing Methods"
From TrueERP wiki
(Created page with "'''Costing Methods''' '''Costing Methods- Has the different costing systems within the ERP been explained?''' Your '''Average Cost''' is the cost of the product averaged by...") |
|||
| Line 1: | Line 1: | ||
'''Costing Methods''' | '''Costing Methods''' | ||
| + | |||
| + | Costing methods are accounting techniques that are used to help understand the value of inputs and outputs in a production process. By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators. | ||
| + | |||
'''Costing Methods- Has the different costing systems within the ERP been explained?''' | '''Costing Methods- Has the different costing systems within the ERP been explained?''' | ||
| − | Your '''Average Cost''' is the cost of the product averaged by your different supplier costs (if applicable). | + | There are 4 costing methods: |
| + | |||
| + | * Your '''Average Cost''' is the cost of the product averaged by your different supplier costs (if applicable). | ||
| − | Your '''Landed Cost''' is the total amount including any shipping/freight charges. | + | * Your '''Landed Cost''' is the total amount including any shipping/freight charges. |
| − | Your '''Manufactured Cost''' is the cost it takes to manufacture your product. | + | * Your '''Manufactured Cost''' is the cost it takes to manufacture your product. |
| − | Your '''Last Cost''' is the most recent cost you bought your product for (it has no other calculations factored into the total amount). | + | * Your '''Last Cost''' is the most recent cost you bought your product for (it has no other calculations factored into the total amount). |
Latest revision as of 08:00, 30 October 2015
Costing Methods
Costing methods are accounting techniques that are used to help understand the value of inputs and outputs in a production process. By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators.
Costing Methods- Has the different costing systems within the ERP been explained?
There are 4 costing methods:
- Your Average Cost is the cost of the product averaged by your different supplier costs (if applicable).
- Your Landed Cost is the total amount including any shipping/freight charges.
- Your Manufactured Cost is the cost it takes to manufacture your product.
- Your Last Cost is the most recent cost you bought your product for (it has no other calculations factored into the total amount).
