Erp assignment
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This document discusses cost centers and activities for a company that manufactures fuses. It identifies two main cost centers: the inventory department and administrative department. The inventory department procures raw materials and stores them. The administrative department incurs freight charges to transport raw materials and finished goods. It then identifies four main cost center groups: manufacturing, sales/marketing, services, and administration. Each group includes various activities and costs.
Erp assignment
- 1. Study and write about software system used for Costing Function • Book-keeping system Problems: • Sales Forecasting • Delayed order Delivery • No optimum utilization of resources
- 2. Identify two Cost Centers Cost Center Inventory Administrative Department Department
- 3. Activities of Cost Centers Inventory department: To procure the raw materials from different sources. The main activities are: • Notify the requirement • Looking for vendor • Make a proposal • Purchase required materials from vendors and store in their inventory house Administrative Department : To incur the freight charges . The main activities are : • Purchase Raw Material from vendor to Gujarat Industrial Development Corporation shade • Ship the raw-material from Gujarat Industrial Development Corporation unit to company’s warehouse • Transfer finished goods from Company’s warehouse to customer located in all over Gujarat
- 4. Cost Centre Groups Neelam Fuse Works Sales & Manufacturing Services Administration Marketing Procurement Salaries & Wages Inventory Management Freight Rent Marketing Charges Cost Loans & EMI Sales Commission
- 5. Neelam Fuse Works Sales & Manufact Administ Distributi Services uring ration on Inventory Sales Procurem Marketin Freight Salaries Loans & Manage Commissi Rent ent g Cost Charges & Wages EMI ment on
- 6. Manufacturing • Procurement of raw materials • Ceramic Fuse handle • Cooper wire • Packing box and material • Aluminum clipping • Inventory Management Sales & Marketing • Sales Commission • Marketing Cost
- 7. Services • Freight Charges • Raw Material from vendor to GIDC shade • GIDC unit to godown • Godown to customer located in all over Gujarat
- 8. Administration • Rent • Godown • Main Office • GIDC shade (Manufacturing unit) • Salaries • Sales and Marketing • Office admin • Operation employee • Loan and tax • VAT tax on raw material • Loan EMI
Editor's Notes
- Inventory Department : Procurement of Raw material Administrative Department : Incurring Rent