How does process cost calculation work?
While the costs were originally allocated to the respective cost center, process cost calculation pursues a cross-divisional approach. The system also tries to break down the overhead rates as general overhead rates and distribute them to the process according to the cause. This way, processes in the administration or auxiliary processes like, for example, the maintenance are dissolved and settled accordingly as well.
The decisive factors are the distribution keys and weightings, which we determine t with our customers from detailed data analyses. Our process cost calculations are always rounded off by a corresponding balance sheet, which ensures that the process model is complete and the distribution nodes have been set correctly.
Basis for the determination of the variable costs are the determined target times per sub-process and the weightings from the determined parameter sheets. As a result, you can, for example, display the costs per unit or per item. Our process cost models also allow “what if” analyses that show the results when changing the input parameters. The complexity is unlimited and can move across the entire corporate structure
Process cost calculation is an indispensable tool in modern logistics.
Please do not hesitate to contact us for more information about process cost calculation!