Development of job costing procedure in packaging industry
Javed, Farrukh (2015)
Javed, Farrukh
Haaga-Helia ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201505158226
https://urn.fi/URN:NBN:fi:amk-201505158226
Tiivistelmä
In this age of severe competition, companies are alwasys in search of new approaches to find the exact production costs. For this purpose, companies often revise the cost of products in order to find the cost of poroducts with an accuracy. Different costing systems are available for product costing such as job costing or process costing but the applicability of the costing system depends on the nature of the manufacturing process.
The aim of study is to provide the latest job costing system for the case company and also calcuate the cost of two different products by using the same method. In order to proceed in products costing, joint work was done with the case company.
Practically, getting information on variable and fixed costs from the case company and then using this cost information for the new costing system is the main task. Beside this, assigning manufacturing overheads (fixed cost) to job records requires a clear understanding of the manufacturing process.
A presentation of two different case orders gives the main idea as to how the case company can continue its costing with this new system in the future. In addition to this, the new system also helps to facilitate the process especially in price decisions. Apart from product cost accuracy, this system also gives information on inventory at each level of activity. it gives a deep view of the utilization of labor, materials and the usage of labor in the right way. Furthermore, it also enables companies to take outsourcing decision by comparing costs.
The aim of study is to provide the latest job costing system for the case company and also calcuate the cost of two different products by using the same method. In order to proceed in products costing, joint work was done with the case company.
Practically, getting information on variable and fixed costs from the case company and then using this cost information for the new costing system is the main task. Beside this, assigning manufacturing overheads (fixed cost) to job records requires a clear understanding of the manufacturing process.
A presentation of two different case orders gives the main idea as to how the case company can continue its costing with this new system in the future. In addition to this, the new system also helps to facilitate the process especially in price decisions. Apart from product cost accuracy, this system also gives information on inventory at each level of activity. it gives a deep view of the utilization of labor, materials and the usage of labor in the right way. Furthermore, it also enables companies to take outsourcing decision by comparing costs.