Process costing traces

Process costing traces and accumulates direct costs, and allocates indirect costs, through a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product.
Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture. CIMA defines process costing as "The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced during the period". Process costing is suitable for industries producing homogeneous products and where production is a continuous flow. A process can be referrwed to as the sub-unit of an organization specifically definde for cost collection purpose.

Your Ad Here

Reasons for use

Companies need to allocate total product costs to units of product for the following reasons:

1) A company may manufacture thousands or millions of units of product in a given period of time.
2) Products are manufactured in large quantities, but products may be sold in small quantities, sometimes one at a time (automobiles, loaves of bread), a dozen or two at a time (eggs, cookies), etc.
3) Product costs must be transferred from Finished Goods to Cost of Goods Sold as sales are made. This requires a correct and accurate accounting of product costs per unit, to have a proper matching of product costs against related sales revenue. *Managers need to maintain cost control over the manufacturing process. Process costing provides managers with feedback that can be used to compare similar product costs from one month to the next, keeping costs in line with projected manufacturing budgets.
4) A fraction-of-a-cent cost change can represent a large dollar change in overall profitability, when selling millions of units of product a month. Managers must carefully watch per unit costs on a daily basis through the production process, while at the same time dealing with materials and output in huge quantities.
5) Materials part way through a process (e.g. chemicals) might need to be given a value, process costing allows for this. By determining what cost the part processed material has incurred such as labour or overhead an "equivalent unit" relative to the value of a finished process can be calculated.


Activity cost and duration report
This report shows the results of the activity cost and durationanalysis.
Note: You cannot generate this or other process model analysis reports from the Project Tree. You must complete the process model analysis and then generate your report from the Analysis view. Process model analysis provides information on the contents of a specific process model and therefore must be completed from the process diagram rather than from the Project Tree.
The activity cost and duration analysis returns the cost of each activity as a sum of the average costs of the allocated resources. It also computes the total working duration of the allocated resources of each activity, and the minimum working duration of the activity.
Cost and duration are key factors in any process analysis. You can use this analysis to determine the cost and duration of each activity within a process for a specified time period.
This analysis helps you to identify which activities have the potential of costing the most and taking the longest to complete. This enables you to focus attention on possible cost savings and time saving opportunities.
Note: Requirements for resource definitions are not considered in this analysis.
Note: If an activity's processing cost, startup cost, or processing time are specified as distributions, this analysis will not evaluate the values. Distribution is used by simulation.
For each activity within the process, this report displays the following information.
Column name
Description
Calculation
Activity
The name of the activity
None
Cost
The cost of the activity, including processing cost, startup cost, and costs of all allocated resources and roles
Note: Availability of resources and roles is not considered when determining this cost
For each required resource or role for the activity, the cost of that resource or rule is calculated as the sum of the following:1) The one-time cost2) The average cost per time unit multipled by the required duration for the activity3) The average cost per quantity multipled by the required quantity4) The average cost per quantity and time unit multiplied by the required quantity and multiplied again by the required duration
This value is then added to the startup and processing cost of the activity itself.
Allocated Resources Total Working Duration
The total duration of all resource requirements
The sum of all the required durations for all resources or roles for the activity.
Activity Minimum Working Duration
The processing time duration for this activity
Processing time
Notes
Any notes the analysis generates while doing its calculations
None

Welingkar Distance Learning

Dear All,
Greetings from Future Education Limited
Future Education is a joint venture between the Future Group and NET HR (among the Top 10 Recruitment Services Consultancy in India) to bring in Management Education of International Standards and professional growth for the individual and the corporate.
All our Management courses are focused towards providing convenience in learning for Working Professionals across industry segments
Our aim is to provide Quality Management Education at affordable prices, at convenient locations through flexible learning options.
With the above aim in mind we have tied up with Welingkar Institute of Management to promote their leading Masters Level Distance Learning Management Programs.
Welingkar Institute of Management Development and Research, Mumbai.
One of the leading Management institutes of India has been in the fore-front in the advancement of business education.
Welingkar offers Distance Learning Masters Level Post-Graduate Diploma in Business Administration recognized by Distance Education Council (DEC), Government of India.
Rankings
Ranked 8th in the Private B-School category by Outlook Magazine in 2008
Ranked 10th amongst best Business Schools Survey by Business India in 2008.
Programs Offered:
Two Years Post-Graduate Diploma in Business Administration -- (PGDBA - DLP)
One Year and six months Diplomas in Management.
P.S : All above Programs provide multiple specializations and are approved by DEC, Govt. of India





Welingkars Masters Level PGDBA DLP-BENEFITS FOR CANDIDATES
1) Placement assistance from Day One of Enrollment.
2) Study Support

A) Books B)Audio Video CD¢s C)Virtual Classroom Facility D)Personal Contact Lectures
E) E-Learning Tool Kits & Online Exams F) Interactive Lectures by Welingkar¢s Faculty


For further information and career advice feel free to call us on the below no.
Tejal Mandani
9819414099
Happy Learning
Future Education Ltd.
www.feltd.in

Modeling

Beyond its scope to turn good n' stylish, the modeling industry is becoming a rage in Punjab, most importantly in Chandigarh, where a lot of individuals regardless of their age view modelling as a route to fame and name.Most of the individuals here share the view that modeling offers a platform to experience and showcase the world closest to various high-end and popular fields. And, no wonder why so many modelling crazy individuals are enrolling themselves to various modeling institutes which have mushroomed across the city.For most of the aspiring models here, the prominent names like Gul Panag and Manpreet Brar, who have earned name and fame for the country in various beauty pageants, have proved to be a big motivation.Inspired by the success of these models and beauty queens, many youngsters now want to experiment with the new age careers like modeling and acting.

Your Ad Here

Many of the enthusiasts even believe after proper training at the institutes, they can handle problem like casting couch with guts and proper sense."I feel that it's required in this part of India. There is a gap, in north India a good modeling and finishing school and what we're looking, basically, is to provide a platform to educate children; male and female models on different aspects of modeling and still, photography.We are also introducing a new thing that is children's modeling which is required. It's a venture in which a lot of children want to get into with the support of their parents," said Shriya Singh, Director, Storm Modelling and Finishing SchoolAspiring individuals from the youngest to the eldest of both genders finding the career in modelling fascinating, as it holds big promise people of all age groups. They believe that with such professional training one can be part of ad campaigns and even move a step closer towards a career on the tinsel screen."Nowadays, children want to do what they feel like and we wish to encourage them to realize their dreams. If they are groomed that way right from the early stage, the can take it up easily and successfully later on. That's why I want to send my child to a modelling school so that she can learn the etiquette, ways of life which will be part of whatever they learn at the training centers
," said Dr Shivani Sidana, a mother of child.Moreover, the areas that these professional modelling school focus on are the finer aspects of walking the ramp, etiquettes, communication and such subjects in a practical manner. These aspects are refined in short-term course modules that last for about four weeks.Besides, grooming and deportment for ramp, impulsive moves, still and TV modeling are also taught in short term workshops."Basically, it can help through training where you can get the overall development every aspect of the modelling field. If you are trained before hand, you can face anything. You'll know how to act on it, how to behave or how to oppose if there is anything bad going on against you. You learnt to react. You have an over all idea about the stream," said Rasoon, an aspiring young male model.