Re: Standard cost

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Kusman,

If you intend to use capacity planning, you should not put all of you labor
in one work center.  You also cannot get an effective work schedules or job
routing through SFC if all labor is in one work center.

For costing purposes, if you have only one labor and overhead rate for all
work centers in the plant, you can do as your consultant suggests.  However,
if you want more accurate costing, and different work centers have different
pay rates, you should set your work centers accordingly.

Every company that I have set up, uses labor in different work centers for
the reasons that I stated above.

Myron Hamilton

In a message dated 2/18/2002 1:32:13 AM Pacific Standard Time,
kusman@takeda.co.id writes:


> BPCS 6002 plf cum Mar98.
>
> We are planning to re setup all of our costing. Currently we need to change
> our Work Center. Our Finance consoultant (Not BPCS Consoultant) want to
> pool
> all labor hour into one W/C.
>
> Can you give me some opinion on that ? What is the affect if we use labor
> into one W/C ?
> What is the common  practice ?
>
> Thanks
> Regards
> KUSMAN
>