Tutorial

These are the main calculations of the FACTON Should Costing:

• Should cost calculation

  The direct costs are allocated at the cost objects according to the principle of causation. You can display this principle within the should cost calculation. The cost analysis is based on the BoM structure you can build in a should cost calculation.

  The major properties of a should cost calculation are:

  • Reference Company
  • Production planning
  • Data Origin
  • Location Factors
  • Overhead rates and scrap rates
  • Target Profit Rates
  • Outbound Logistics
  • Payment Terms
  • Cost Summary > Costing Schema

  The following properties are available within the should cost calculation:

  • Target Management
  • Measure Management
  • Analyze and Evaluate
  • Identification of Cost Drivers
  • Investment analysis
  • Multi-Level Supply Chain
  • Material Quantity Calculation
  • Material Requirement Planning

 

• Overhead Rate Calculation

  The overhead costs are indirectly included in the cost objects according to the principle of average. You can display this principle within the FACTON overhead rate calculation.