Financial reports. Method of costing in cost calculation
Cost-accounting method in Budget-Plan Express when calculating the cost price
The cost price, in most cases, can be determined - as the lower limit of the price. The cost price is a monetary expression of variables and fixed costs per unit of output.
The cost-sharing for fixed cost and variable cost is traditionally used in direct costing systems, however, the fixed (indirect) costs are also attributed to the result, but not included in the product. This does not allow for in-depth analysis of products based on mathematical methods - breakeven analysis, correlation analysis, regression analysis, etc.
In the "Budget-Plan Express", as in the "direct-costing" system, there is a division of costs into fixed and variable costs. However, in order to clarify the fixed costs in products, the ABC-method (Activity Based Costing) applies the distribution of indirect (constant) costs associated with the production of a particular product.
To apply the ABC method, a special interface is used to "distribute costs to products."
An example of editing. The tab "Distribution of costs":
The interface "Cost sharing by products" is used in two plans - in "Plan production costs"
and "Plan fixed costs"
Adjusting costs with the application of the ABC method extends the analysis capabilities for a particular product - see "Products report. Break-even analysis"