Cost of production should be analyzed properly to achieve desired margin or profit. Costing will give the ability to the management to control costs of production and periodical revision of costing faction and pricing of the final products. The main components of the product costing include material costing, labour costing and factory overheads along with the other managerial cost. The SFG (semi finished goods), FG (finished goods) costing. Integra ERP provides the stage/process wise costing if there have multiple productions stages or process. Along with the material cost semi finished components cost or sub assembly cost also taken into consideration in the costing factor. Provision is there to add profit portion in the stage of production so as to arrive the end user pricing of the product.
Benefits of product costing :
1. To find out the variance between standard cost (budgeted cost) and actual cost. 2. Reassignment of raw material components or ingredients to maintain the costing 3. Ability to maintain desired margin for steady growth of the company 4. Periodical revision of pricing and marketing policies