Re: cost generation question

From Al Macintyre 405 CD

Perhaps we are fortunate in that our Work Center overhead rates can all be 
changed in less than a day by one person.  So our Chief Accountant figures 
out what the new rules will be, communicates them to our Chief Engineer, and 
various people are notified that this is happening.

We run Standard Cost Rollups such that every facility is rolled up twice a 
week.
Mon & Wed nites I do cost rollups on facilities that make parts that the 
others use.
Tues & Thurs nites I do cost rollups on all the other facilities.
This has to do with some checking we do on costs of cross-facility parts.

When I know that we have had a change to Overhead rates, or some other 
variant, I do a Copy Cost Set from Standard to Simulated, before the first 
Cost Rollup after the change, then a few days later we are looking at the 
differences between Standard and Simulated.

We update our material costs just as soon as we know the costs are changing.  
We do not wait for end of year to adjust our costs, we try to keep them as 
accurate as we can.   For example, in making Electrical Copper Wiring 
Harnesses, the Copper Content is extremely high.  Now the price of Copper in 
the world market is extremely volatile, but we have only a few item numbers 
for the various metals that go into the wire that we extrude ... the world 
market price changes, and we can change our data to agree with what we will 
be paying for our next supply of Copper.

We also have reports that show us what the copper content is of final 
products to customers, so that if there is a dramatic change in world prices, 
we know what impact it is going to have on our costs to make which end 
products.

> From: Cdoe@barton-instruments.com (Chick Doe)
 
>  it's that time of year where we start worrying about physical inventory 
> and cost standards revisions. we would like to develop new cost standards 
for 
> next year's costs. the bpcs CST system provides the ability to establish 
new 
> cost sets, etc. but part of our process is to establish new labor and 
> overhead rates. so we would like to establish a new cost set, copy our 
> current standards into that set, update the material standards in that set, 
> enter new labor and overhead rates, and then do a cost generation to see 
the 
> resulting rolled-up costs. only problem is that there is no place to put 
new 
> labor and overhead rates that i know of. the only place that you can put 
them 
> is in the work center file and we need to keep our current rates there to 
> support SFC, etc. 
>  
>  am i missing something? how do other companies develop new rolled-up cost 
> standards?
>  
>  we are version 6.04
>  
>  chick doe
>  barton instrument systems
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