Accounting

What is Bill of Materials Functionality?

A Bill of Materials is the complete list of parts, materials or ingredients required to complete a finished and sellable product.

Calculating Cost of Goods Sold in Manufacturing

Efficiency is the lifeblood of any manufacturing company. If the processes and procedures work smoothly and efficiently, profitability is enhanced. And if they don’t, then profits may suffer.

Work in Process Inventory (WIP) – Definition and Formula

Every manufacturing company must deal with inventory. Those that do it thoroughly by properly accounting for Work in Process inventory are bound to have a competitive advantage over the others.

How to Produce the Best Job Cost Estimates

There was a time – not all that long ago – when quoting a manufactured product or service would turn into a guessing game. Yes, it was an educated guess to be sure.

5 Practices for Job Costing

Job costing is considered to be something of an art form as creating a balance between your business and ensuring your employees are fairly paid is not always as easy as you may think.

The Benefits of MRP System for Manufacturing Accounting

If you have any familiarity with MRP systems, you know the advantages they offer in workforce planning, procurement, inventory management, workstation capacity, shop floor data collection, and so much more.And while production planning, eliminating excess inventory, and cost savings are substantial benefits of owning MRP software, one that might be overlooked is the value it […]

Manufacturing Software and Accounting Software Integration

At some point, every production company needs to start using manufacturing software (i.e. an MRP system). It is very likely that by that time accounting software is already in use, but it has ceased to satisfy needs – it does not supply the necessary answers and restrains the growth of the business. Therefore, a decision is made to start […]

How much do my products cost?

What is product cost? It’s important to know the manufacturing cost of your products. This is one of the most significant and defining factors in any manufacturing business. The sales price is the value the company receives for making the product. The key question is – at what cost does this come? If the cost […]

Manufacturing Cost Advantage Shift

New studies reveal that the cost competitiveness of manufacturing across the globe has shifted. For example, according to the Boston Consulting Group, even though China remains the number one country in terms of manufacturing competitiveness, the manufacturing cost advantage over the U.S. has shrunk to less than 5 percent.

Manufacturing cost – how to know it?

Knowing manufacturing cost is extremely important in order to offer competitive prices while staying in profit. To complicate the matter, the word cost shelters two different concepts:

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