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Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 15 · Cost Accounting Structures

Cost elements and components

Lesson 154 of 188 · 13 min

Review the delivered cost elements, create elements for material, labour, machine and overhead, set element types, review cost components and what they represent, create components for the incoming cost sources, and show elements and components side by side, explaining the direction of flow. Cost elements are the categories the controller will see in the cost breakdown. Design them against the cost report they want, not generically. If they analyse labour separately from machine time, those are separate elements — which is exactly what the Halden brief specifies. Too many elements produces an unreadable breakdown. Four to eight is typical.

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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