Post by account_disabled on Mar 7, 2024 6:39:18 GMT
A simple example in this case is the raw materials required for production. It is important to note that unit variable costs generally remain constant as long as the production structure does not change. So-called indirect costs on the other hand are characterized by the fact that such traceability is either difficult or even impossible to establish. In these cases it is necessary to use drivers or consumption measures based on causal measures. A simple example is allocating electricity costs to the production of different products.
The kWh consumption of each machine will be the driver enabling us to allocate electricity costs to its cost targets. Although less precise than direct attribution a high Spain Mobile Number List degree of accuracy can be achieved if the causal relationships selected for indirect cost allocation are good enough. Free guide on how to choose the type of new cost system. Based on the concepts we have just mentioned, different cost systems have been configured. Those who seek to analyze cost-volume-profit models whose goals focus on studying modified sales volume. changes in profits.
These only consider direct costs and more specifically variable costs. In this way the coverage profit per unit of product sold can be calculated. This is the basis for making decisions about optimal output to maximize profits or what actions to take in the face of changes in product prices or costs. Another category is the so-called traditional cost management model or lot-based costing which seeks to allocate all costs, not just direct costs, to the final products produced or sold by the company. The relevant drivers in this type of cost system are those most closely related to the output of the manufacturing unit.
The kWh consumption of each machine will be the driver enabling us to allocate electricity costs to its cost targets. Although less precise than direct attribution a high Spain Mobile Number List degree of accuracy can be achieved if the causal relationships selected for indirect cost allocation are good enough. Free guide on how to choose the type of new cost system. Based on the concepts we have just mentioned, different cost systems have been configured. Those who seek to analyze cost-volume-profit models whose goals focus on studying modified sales volume. changes in profits.
These only consider direct costs and more specifically variable costs. In this way the coverage profit per unit of product sold can be calculated. This is the basis for making decisions about optimal output to maximize profits or what actions to take in the face of changes in product prices or costs. Another category is the so-called traditional cost management model or lot-based costing which seeks to allocate all costs, not just direct costs, to the final products produced or sold by the company. The relevant drivers in this type of cost system are those most closely related to the output of the manufacturing unit.