Lab briefing: the Halden costing design

Two hours, and it is more writing than configuring. Read this twice. Halden's controller has used standard costing for fifteen years and reports monthly on material price variance, labour efficiency variance and overhead absorption. She sets standards annually each October and is adamant this continues. Both plants and the warehouse are one legal entity. The group parent, in another country, requires an additional reporting basis in a different currency for consolidation. Finance wants to see finished goods valued separately from raw material for the same item, because some raw material is bought forward at fixed prices and finished goods carry the current conversion cost. Cost elements needed: material, purchased conversion — for the outside plating — direct labour, machine, and manufacturing overhead. Reported separately, because the controller analyses labour and machine efficiency independently. Lot-level cost visibility has been mentioned by the quality manager. The controller says she has never analysed…

In this module: Module 15 · Cost Accounting Structures

1. 1What we are building
2. 2The warning nobody readsFree preview
3. 3The costing object model
4. 4Choosing a cost method
5. 5Cost organization design
6. 6Running the costing design workshop
7. 7Cost organizations and cost books
8. 8Cost organization relationships
9. 9Cost elements and components
10. 10Cost component mappings
11. 11Valuation structures and units
12. 12Cost profiles
13. 13Expense pools and accounting
14. 14Quick setup for cost accounting
15. 15What breaks
16. 16Lab briefing: the Halden costing design
17. 17Lab solution walkthrough