Does Manufacturing Need a Better Costing Approach?

摘要

THE SIGNS THAT YOUR COMPANY NEEDS to improve its costing won't come from the obvious place, Finance. Why? Finance's most urgent need for cost information is the financial statement presentation of the inventory value and cost of goods sold. This information can be generated by a fairly simple model that places direct material, direct labor and overhead into large pools and allocates the costs "reasonably" and consistently. The simpler the model, the less internal decision support information it provides. The demands for improving your company's costing approach will come primarily from Operations and Sales; however, the manner in which these needs will be expressed normally won't be a straightforward request.