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Production model
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Production model is generally less variety, Cost Analog Control
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As noted above, generally not suited to the standard cost of customized products customized cost management, unless the product of the main part of the existence of commonalities. In a stable environment, the standard cost can be a better use.
Standard project should not be too much.
Differences in the project settings is not possible, the key lies in corporate control and management needs. Generally speaking, more than 10 different items should not be, it is difficult to imagine too many differences in the definition of how to find the real focus of later. Material price volatility is relatively stable.
The standard cost of materials should not be arbitrarily modified drift. ABC classification of materials shall be in accordance with the management. For example, more than 5,000 individual changes in material costs by more than 10% change the standard cost single material changes in costs of materials by more than 15% change the standard costs. Enterprises must have a control framework. At the same time the price differences should not become a major assessment of procurement staff tabulation, the price is best approved by a specialized agency, and regularly monitor the price trends on the cost impact.
Cost Analog Control
Because the BOM or material standard cost prices will directly affect the value of inventory and product cost. In advance the cost of simulation has become particularly important because companies can predict in advance the cost of changes in the amount of time to make the corresponding decisions.
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