Learn about the accounting costs system

Let us agree at the outset that whatever the cost accounting system you follow and whatever type of product you produce, the cost of the product you own will not consist of more than 3 elements, which are direct materials, direct wages and other industrial costs. Countries and on this basis start price the product for you and sell it at a price that covers its cost and makes you a reasonable profit

What is the most appropriate cost system for my job?

We have more than one cost system that we can use and your choice of the system and strategy that you will walk on will be based on the nature of your job and the type of product that you produce. The appropriate cost system is the costing system of production orders, through which the production order could not be performed except when the customer requested the first, or I could go according to a specific schedule or time plan for production according to the customers' previous requests

An example of production orders (factories for the production of wood)

First: Its production will be typical and will be produced in large quantities so that I can fully utilize my production capacity and thus I will incur lower costs.

 Secondly: Production here is going through more than one stage

To reach its final form, where I can sell it to the customer at a good price, and here is the appropriate cost system and the best strategy that can be followed is the strategy of the production stages

 My role here is to determine the cost of the product in each stage of production

And in the final stage, how much exactly is the cost?

How do I build the appropriate cost system for my company?

Whether you are working on Manuel or on the Factory Accounting and Manufacturing Cost Management program, and whether your system is based on orders or production stages, there are 3 important axes in designing the cost system, you must take them into consideration.

The first axis: It is that you adopt an integrated warehouse system, whether raw materials stores or full product stores, and the items are coded in tree form and the stores are divided in your money in an exact manner, and the items are formed in the form of groups, which will help you in many reports, It also greatly allows you to control stores and items.

 This is important because you will be able to accurately determine the exact cost of your product from raw materials.

The second axis: an accurate system for managing human resources through which an estimate can reach the direct and indirect cost of labor, whether the workers are employed on a daily basis, production, or per month, and whether the workers are generally limited to one stage of production or more than one stage

The third axis: the most important of them is the link between the cost system as an independent system, with its reports and standards, and between the financial accounting system, and you can translate all the movements that can take place within the operation into daily entries organized on accounts that you have in the accounts directory

And through it, you can extract the financial statements of your company.

The manufacturing and cost management program is one of the components of the Accflex system that provides the best integrated ERP programs, which provides complete control over the production process in terms of materials, costs and even pricing of the items and goods produced.

The manufacturing system allows you to plan the expected production processes or new customer requests, by analyzing the required and available time and materials, and it also gives you excellent control over the stocks of raw materials and products in warehouses and translates all manufacturing movements into daily entries in the general accounts program.

Accflex aims to provide you with a set of ERP programs and subsystems for all production activities. You can get an integrated manufacturing program for your activity to make sure of the capabilities of the program, as well as a full video explanation of it and a written step guide.

You can request a price for the best accounting program in Egypt and the Middle East Accflex