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PRODUCT COSTING  Different costs for different purposes? Dries van Boxtel
Problem definition Which product costing system should one implement, taking into account the requirements following from the strategy chosen and the environment operated in? Page
Framework used Other requirements Costing system - system elements Costing system - business elements Strategy & objectives Page  Profitability Operational Control Business Control Input measurement Product Valuation Cost accumulation Cost flow Recording interval Decisions Joint costs By-product costing Financial accounting Cost of costing Trans-parency
Conclusions: proposed costing system Business elements Full costs & extract variable costs for business control (ABC costing) By-product costing:   Subtract expected sales value Joint costing: Allocate based on sales value at split off point (SVSOP) System elements Measure standard + actual Accumulate with process costing Flow: weighted average & FIFO Interval: Mixed, depending on cost element Page

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Product Costing

  • 1. PRODUCT COSTING Different costs for different purposes? Dries van Boxtel
  • 2. Problem definition Which product costing system should one implement, taking into account the requirements following from the strategy chosen and the environment operated in? Page
  • 3. Framework used Other requirements Costing system - system elements Costing system - business elements Strategy & objectives Page Profitability Operational Control Business Control Input measurement Product Valuation Cost accumulation Cost flow Recording interval Decisions Joint costs By-product costing Financial accounting Cost of costing Trans-parency
  • 4. Conclusions: proposed costing system Business elements Full costs & extract variable costs for business control (ABC costing) By-product costing: Subtract expected sales value Joint costing: Allocate based on sales value at split off point (SVSOP) System elements Measure standard + actual Accumulate with process costing Flow: weighted average & FIFO Interval: Mixed, depending on cost element Page

Editor's Notes

  • #3: Probleemstelling zoals jullie die hebben kunnen lezen in de scriptie.
  • #4: Het gebruikte framework, uit de theorie met daaraan toegevoegd: joint costs, by-product costing, financial accounting, cost of costing en transparency. Voorbeelden van vragen die VION wil beantwoorden Profitability: product, customer, market, country How much profit did we make on smoked bacon in Q1: should we continue to produce this or should we sell the input product as is? How much profit did we make on customer D last year? Should we sell legs in Italy or in Spain? 2. Business control: performance of sales, production, farming How did fine-deboning perform last month? Was total labor cost in production below or above standard? Operational planning & control We need to produce 10000 KG of Ham Selsec UA 11.5+ kg. How much material is required and how much labor needs to be planned? How much should we charge for a deboned leg? Prices for by-product tenderloin went up last week. How to price the bacon this week? Did site X perform against standards last week? If not, why? Focus in scriptie op business elements, immers: system follows business. Focus in deze presentatie op een aantal elementen: product valuation (theorie), joint costs (VION specifiek) en recording interval (besparing op werkwijze).
  • #5: Standard + actual needed for variance analysis and financial control Op langere termijn zou toegewerkt kunnen worden naar order specific costing