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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL

Chapter
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Different cost functions
In this first chapter will discuss the specific services that costs the company
pays special form and the employer and / or executive. We also look at ways it c
an and should take to bring its service to the diverse needs to meet.
The presence of Operational Control Costs What ...? Where ..? How ...? Administr
ative channels What about costs? Near business economic interpretation of realit
y Ways How do we present the product? " Budgeted Expenditure Start Thinking norm
al Volume Application Rate How is each field? Manpower The two appearances incor
porate the data to the Excel spreadsheet Activities Summary 16 18 18 19 20 22 24
24 25 27 28 29 29 32 33 34 35 36 47 48
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
THE PRESENCE OF COSTS
Cost The study presents two distinct profiles, when viewed from the mandated fun
ctions of the business model. It must act as effective "controller" in operation
al terms and help be a clear understanding of the business, there we are defined
in principle two fields of action: operational control and economic performer,
as shown in the diagram in Figure 1.
Control
Interpretation
Figure 1. Fields.
While it is true that this work will explore the second main objective of the ab
ove functions, a scale will start to remember the necessary integration between
the two states have. These fields of action should be clearly linked to the esse
ntial purposes of achieving harmony in the conduction (Figure 2). This harmony w
ill ensure that what is made in terms of "business idea" is what is running and
vice versa, rest in the belief that knowledge of source on the situation of the
company and its operation is built in the form reliable.
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The presence of costs
Figure 2. Related fields.
It is difficult to imagine a day passes in which there is asome the question: Ho
w much do I need to cover certain expenses? or what if I go up or under a certai
n price? And in all these questions, through these ongoing questions, Costs ensu
res your presence and permanence. However, these costs are occurrences of the ch
aracteristic of being simple, the employer makes a fast and accurate economic co
ncept that does not need to know the name of cost to use or observe a particular
procedure. Your intuition guides you on the right track. This paper will attemp
t to take advantage of this fresh, this friendly and almost spontaneous presence
of Costs to incorporate a technical mechanism to continue to honor these benefi
ts. One principle that costs should be met is very simple operation and understa
nding, do not forget that we prepare to serve as the control board of a vehicle
usually traveling at high speeds and must, at some point, make abrupt maneuvers.
Therefore, your message must be timely and effective. Then continue the road, k
nowing more deeply the two fields of action mentioned.
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Different cost functions
To rescue a point in this journey of initiation is the presence of "natural" has
costs in business and in business. What does this mean? That unlike other areas
of application and beyond have a responsibility in the organization or office s
pecifically assigned, you always have a guaranteed place in a privileged place:
the mind of the employer.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
OPERATIONAL CONTROL
Costs in this area appears to us as a hinge, watching the stage production, foll
ows and controls by adopting the practices and language appropriate to this area
, to decode it and subsequently carried in accounting language.
What ...? Where ..?
Specifies the extent that we give the term control and, above all, we set the su
bject of it and the context in which it occurs. In the area accounting Inventori
es (Raw Materials - Production Process - Finished) found its ultimate goal of co
ntrol, and factory activity in the production environment, its natural place of
observation. However, what represents the conjunction of these two concepts? If
we apply on them a supposed short, we would find the process of wealth creation,
which has an industrial company. Real Change + Production = Wealth Creation Whi
le it is true that this process must be complemented and supplemented by other a
ctivities also generate value,€as marketing, administration, finance, etc.., we
find the feasibility of its initial construction in the transformation process (
Figure 3).
FLOUR
+
Wealth Creation
Figure 3. Wealth Creation.
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Operational control
How ...?
Witness the transformation process. This presents us with the sequence (Figure 4
):
Raw Materials
Work in process
Finished goods
Figure 4. Transformation process.
On this tour made by Real Change is where they develop and incorporate value-add
ed. How accompanies this transit costs, how it continues to fulfill the function
we are describing, productive land? We found that support this monitoring metho
ds in a production order, which is accompanying the same throughout the tour, wh
ile others expect the pace of production for each of its significant processes.
In this way, and through a very synthetic description, recognize and distinguish
systems Costs and Production Order Process (Figure 5). However, beyond the part
icular, both are from each of the systems as well as production of such features
, we will make a global approach that allows us to represent the path of the Exc
hange Property, establishing liaison mechanisms which worth Costs, to appear in
it.
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Different cost functions
There, then, appears in every sense of the concept to care, the initial and fina
l concern of costs: in principle, understand and then help consolidate the proce
ss of generating wealth.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
Deposit materials
Production Process
Consumption
Labor
Production Order
Finished product
Figure 5. Production monitoring.
We can also imagine the company as a magazine of four walls and on the study thi
s transition and see it integrated circuits:
"Necessary expenses?
Raw Materials
PRODUCTION
Finished product
Reception Circuit
Circuit Production
Tour Merchandise Sold Cost
Figure 6. Control scheme.
Administrative Circuits
Exposed three permanent circuits that feed information and a special control:
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Operational control
Consider the particular route of each circuit and its characteristics:
From Operating Territory
Approved material
Until the stock higher in the
The arrival of the raw material plant
Material rejected
Its output plant
Figure 7. Reception circuit.
The main control measures found in this segment are referred to the amounts rece
ived as well as the simultaneous or subsequent revisions of quality. In the next
segment, we take the example system for orders.
Note the actions that occur between: Since the release of production order to de
livering the finished product
Figure 8. Production Circuit.
The control exerted on rates of return, waste, wastage and time spent, as well a
s compliance with quality goals.
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Different cost functions
• Operational Planning Reception Circuit Circuit Production • Cost • Merchandise
Sold Circuit Link Market
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
Real Change Follow Up From the customer's acceptance deposit your entry into the
finished product revenue product Control rejected
Figure 9. Merchandise Sold Cost Circuit.
Most control action on that section is directed primarily to the physical quanti
ties in stock and also to the released, providing a safe and effective bridge to
the billing process.
What about costs?
Let us now comment on the critical view of costs on production costs. This criti
cal view takes as a parameter of acceptance of the need that the production proc
ess at the level of production that is, is the Total Expenditure and each item c
omponent of that total (Figure 10).
Production
Is it necessary? ... Are they necessary?
Expenses
Figure 10. Control scheme.
We are one of the two N as important and frequent Costs: Necessary, the other th
at we will see Normal. We both help define and clarify the concept. We close the
analysis of this field with all the above diagram (Figure 11).
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Operational control
Control field
Arrival feedstock
Not
Approval Rejection
Yes
Reception Circuit
X Stock raw material
Production
Waste Sinking
Circuit Production
Not
Quality control
Yes
Stock finished product X
Client
Not
Approval Rejection
Yes
Tour Merchandise Sold Cost
Bill X
X = Circuit is not relieved
Figure 11.€Necessary expenses.
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Different cost functions
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
ECONOMIC INTERPRETATION OF BUSINESS
Let us place ourselves in the other fields mentioned, the field from which costs
the company must be interpreted in economic terms. Start As an aside, let's say
that this field can be also recognized as decision-expression with which we wil
l mention it at some time. We begin our analysis with a question: What does this
mean, concretely, according to economic performance? We refer to the company to
understand its ability to generate profits, to install mechanisms in instrument
al terms and apply the concepts required in the field of analysis, to optimize t
he business operation, in fulfilling its main objective. While it is true that e
very company has peculiarities that require special analysis to respect this "in
dividuality", is generally valid patterns with clarity and provide us a way to m
ake us carry out this task. To fulfill this function, Costs, requires in princip
le "rise" in the conceptual field, becoming an acute and profound analyst of the
company on its ability to generate profits. Then, for the purposes of this anal
ysis have practical effect, tends to structure itself, taking for viewing the fo
rm of a leadership board, which, through its indicators, guidance on the directi
on to follow while warning the dangers to face. Thus, the different types of org
anization: Production, Sales, Finance, etc., Will be measured and reviewed on an
ongoing and permanent. Costs shown in this role and manifests itself through su
ch actions as the most powerful and reliable behavior counselor available to the
employer and / or to incorporate security executive with the difficult task of
driving.
Closer to reality
We recall here what has been said about the link that should exist between this
field of economic and pointing to the above-mentioned control measures.
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Economic interpretation of the business
This rapid mechanism "desktop" simplifies nothing less than reality, which is th
e initial subject on which we are projecting, and more, on which we must improve
. This information will become a false counselor behaviors that then in full swi
ng, it will require imagination to amalgamate what happened with the "writing",
cast doubt on the conduct by subtracting momentum and delaying decisions. Is req
uired in all tasks of planning and interpretation of the company, begin fortifyi
ng the "ground wire" which informs us about the reality of the business scenario
for on it, as conveniently, build superior vision of the company. Remember this
requirement, prior to the approach that we as an interpreter of economic costs
(target of this book), to emphasize the respect that is required in the exercise
of that on interaction with operational activities and the certainty of the sit
uation.
Forms submitted
In both fields, and presents costs treated differently. This difference arises f
rom their ability to adapt to meet more effectively the needs that arise in each
. What needs to change from one to another field in order to fulfill their respe
ctive roles? The modification is basically the treatment is applied to the mass
overhead. In one case will be part of the cost and other not. Consider and remem
ber to Figure 12, located in the control field, the elements • Raw materials tha
t make up the cost of production.
• Direct labor • Indirect costs
Figure 12. Elements that make up the cost of production.
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Different cost functions
It is very common that we find attractive in practice strategic planning studies
or definitions of its own economic reality of the company, which assumptions ar
e based on costs that we should have, in conclusion by inferring on the results
obtained or expected.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
In the product
The term used in the third element ("indirect") directs us, in principle, the di
stinctive feature that we mentioned, to strengthen the distinction we make this
brief analysis: If we have before us a product, whatever it is, the observation
itself he makes us aware that we could say directly, the raw material it contain
s. Similarly, although we need a little more imagination in our observation,€we
can detect the incorporation of Labor hours required for their processing (later
we will make a special comment on this point.) That is, the two elements mentio
ned in the first place we appear sharper and clearer as we approach the product.
Product Out
But what happens when we raise our eyes and observe the production environment?
We found a set of charges that the company should take and which are necessary f
or production. Very numerous are the possible members of this group. Mention onl
y some, as an example to us on the topic:
• Salaries and social charges Production Manager. • • staff salaries and social
security deposit. • Salaries and social charges Quality Control staff. • Mainten
ance. • Energy. • On machine. • On buildings. • Ar • Test and trials. • General
manufacturing costs.
Figure 13. Production costs that are outside of the product.
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How do we take the product?
The concepts we have not detailed show sharper as we approach the product, not d
iscovered through them. These concepts actually relate, are easier to see in per
iods of time (eg one month). This is, in most cases, through which we use for fu
ll comprehension. In practice it is rare that we refer to the salaries of foreme
n as a unit charge, but rather we ask "how much we are having a month salary." N
ow known as the different behavior of this item, we know that to perform its sup
ervisory role, Costs need to know what it is for each product at each production
unit, the mass of expenses that we mentioned, which is more well related to per
iods of time. Compliance, among other things, to value the inventory, considerin
g it our effort already made, requires this knowledge.
How do I go to the product?
Well, how do we add to each product? We reiterate the charge for each unit costs
for those who have no direct relationship with him, we saw that they were more
clear in its monthly view (Figure 14).
"Direct Product Raw Materials? Monthly Fixed Expenses
Direct labor
Figure 14. Fixed Expenses.
Obviously, we're going to have to find a mechanism that allows us to distribute
to all units produced.
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Different cost functions
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
It at this point to make something clear: the mechanism will be shown in a very
tight brief, which will require an additional fee for care of your total underst
anding. To ensure traceability, this procedure has been segmented and show and s
tations for which we will:
Purpose of the procedure: Fixed Expenses reasonably distribute the goods.
We try in this order: • Start thinking first thing that comes to mind. • Budgete
d Expenses: normal. The present located at production sites and service centers.
• Normal Volume: we can produce units.
The mod
ion n is responsible for what
Figure 15. Spending the product.
Start Thinking
The first thing one thinks of is "what could divide the units manufactured by" t
hinking we could find an option. A brief argument will allow us to see that it i
s not, while we help you find the appropriate mechanism. This was our states:
Total expenditure Units produced
= Cargo unit
Figure 16. Cargo Unit.
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How do we take the product?
Here the two concepts embodied.
Budgeted Expenditure
There are several questions that we can do about the numerator of the relationsh
ip suggested: • "All this spending is for this period? • Do not miss any? • Do y
ou have relative to the volume produced? With the answer to these simple questio
ns, find the method to accurately determine the concept.
The corresponding per site Budget spending is required is that required for the
expected production in the period. Therefore, it is safer to work with an expens
e budget that considers the various appearances and frequencies of it and show i
t in its monthly incidence. It would also be very useful to make more effective
their understanding while we begin to bring the cost to the product, that this b
udget is set open in the various existing centers, thus establishing the differe
nce between those that are produced and those are of service.
Table 1. Use budgeted expenditure.
Conclusion: as period expenses will consider the budget for the expected product
ion.€The same will be opened in: Production Centers and Service Centers.
Normal volume
Regarding the divisor of the formula with the start we gave this analysis, units
produced, which are ultimately those that will receive these charges, we can al
so ask some questions to guide us to a correct determination: • Are we making th
e level allow us the capability and resources involved? • All products do we mea
n the same effort?
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Different cost functions
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
PRODUCE - not occur if we make different amounts in real terms than those laid-s
uppose a lower level of production and, above them, distribute the total expendi
ture, it is obvious that we are attributing a large charge. If we think a little
more, we are charging which would correspond to the units did not do, and this
is a grave mistake that we should not make, we must never confuse the cost of pr
oducing the cost of not producing. Ie should never be incorporated as a cost of
idle capacity that a company can have, we have manufactured products did not nee
d it.
Therefore, as a first conclusion, the production volume to consider is that expe
cted from the budget. This production volume we know as normal (Figure 17).
Figure 17. Cost of producing - idle capacity.
Let us reflect briefly on the implications of the inclusion of idle capacity and
responsibility of the product. If an employer takes this as a reference cost of
business-as-usual, think that the products leave no margin and can choose to op
erate at higher prices, which probably further diminish their capacity occupied.
Despite the simplicity of the example, we see the wrong orientation was done: t
hey were found selling more units and goes to look for higher prices.
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How do we take the product?
The employer accepted this expense because it gets power transformation may have
a certain amount of productive capacity. What we will be more accurate to measu
re this capability? Our reasoning we quickly answer in hours, certainly there is
the correct measure, in hours of work, as our production structure, we will be
more representative to reflect the efforts of our staff (man hours) or use of ou
r equipment (Hours Machine). There we found our second and final conclusion on t
he volume, we put a factor of production, may be it man or Hours Hours Machine.
The measure
Consider a simple example of three products that use capacity in Man Hours as ho
w we found then this volume:
Figure 18. Capacity measured in man hours.
There we find the capacity that gives rise to our spending. If we make that volu
me production, we need that many hours, requiring in many respects to assume a l
evel of spending.
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Different cost functions
However, the normal volume we're going to express is it valid to do so in units?
"Each of them represents the same amount of effort? To measure their fair share
of Total Expenditure, we might think: according to what we have this expense?,
Why do we accept this monthly commitment?
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How do I measure the normal capacity?
COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
The data we obtained, the expected production volume measured in what is known a
s a production factor in this case, the man-hours is called Application Module (
Figure 19).
Expected volume of production
x
Unit production Factor
Figure 19. Application Module.
Application Fee
To get the product, we can only properly combine the budget we have made with th
e volume of production as measured above, so we'll get a reasonable price for ea
ch hour incorporated into products. This price, which actually is called Applica
tion Rate, is the vehicle we use to move reasonably share of each product of Tot
al Expenditure (Figure 20).
Expenditure Budget Application Module
= Rate of Application
Figure 20. Application fee.
With this rate then we close this section that sought to guide us in how to keep
costs to the product. It synthesizes the steps we have taken through a graph (F
igure 21).
Sequence collection
The sequence for obtaining the application rate is: 1. To determine monthly expe
nses budget. 2. Allocate Production Centers - Service Centers.
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How does it present in every field?
Application Fee Monthly Budget Expenses
Production Centers
Service Centers
Monthly cost production centers Factor Application Module Production
=
Application Fee
Normal Production Volume (by product)
Figure 21. Summary of the steps taken so far.
HOW TO SUBMIT IN EVERY FIELD?
The explanation that we did in previous form will allow us to define how it is p
resented now costs in the field of control. It does this by incorporating three
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Different cost functions
3. Reassign Service Centers at the Centers for Manufacturing (distributed as the
use made of each of them.) 4. Determine expected production volume (units per p
roduct). 5. Defining the Application Module for Production Centre (units per inp
ut). 6. Obtain the application rate (per site): budget expenditure / application
module.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
elements we have mentioned: Raw material and workmanship incorporated directly a
nd expenses that come, as we have seen, through an indirect mechanism, so that w
e recognize as indirect manufacturing costs. In the field of economic interpreta
tion, we find a strong change: only the elements are considered direct costs, wh
ile the costs will be considered in its entirety and associated with the period.
They are not incorporated in the product no direct charges.
Manpower
We will reflect on the direct labor, while it is true in the field of control, p
art of the product to facilitate performance measures on their use, not so clear
ly presented to us in their behavior when trying to interpret the real meaning b
usiness. If we find it hard to imagine a direct relationship between a salary, w
ages or salaries and Production Unit, including the consideration of existing la
bor laws, "even more difficult we find it more feasible to reduce them for havin
g produced less (per hour, per day) than expected. For this, and privileging the
practical sense that we have proposed is that the effects of a correct economic
interpretation of the business, we believe the Workforce in the field, as a con
cept indirectly incorporated into the mass of the Monthly Fixed Expenses .
Raw Material Control Direct labor costs fixed decision
Raw material
Figure 22. Control and decision.
Other Direct Costs
In this review we have remained in the productive environment, being then the ra
w material as a leading SOC.
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How does it present in every field?
In other environments can also find charges associated with the product, for exa
mple, commissions paid for Sale.
The two occurrences
Consider the two occurrences analyzed in a simple example and the effect they ha
ve on the respective tables of results:
Figure 23. Tables of Results.
• Budget Monthly cost: $ 33,000. • The company operates a single production cent
er. • Expenses are distributed among the products per man hour. • We do not cons
ider other fixed costs. Total Cost For we need to apply costs to products. How m
uch time corresponds Man? To do this, follow the sequence of production: 1. We p
ulled the Application Module:
Figure 24. Application Module.
2. We obtain the rate of application:
Expenditure Budget $ 33,000 Application Module
=
11 000 HH
=
3
Figure 25. Application fee.
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Different cost functions
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
3. Now we can determine the unit charge for the expenses:
Figure 26. Cargo Unit.
4. Therefore, the total cost is thus:
Figure 27. Calculation of total cost per unit.
We have added some data to the intent that this form entered in Excel will allow
us to practice by doing a first-calculate the tables of results in both fields.
Incorporate the data of the Production and Sale Real (same) for the purpose tha
t we see in their behavior as intended, if we operated with spare capacity (less
than expected) or have had overproduction. What would we do then? • Lower than
expected production: the resulting amount of the units produced by the MOD and t
he rate of application becomes a loss (Subaplicación). • Higher than expected pr
oduction: ditto, but it becomes a utility (Over-).
INCORPORATING DATA TO EXCEL
Excel is an electronic template of calculation, a program that lets the computer
manage the information normally handled in plan-
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Enter the data to Excel spreadsheet
plants and seeds. In the following pages we will see how to incorporate the data
evaluated in this chapter within a spreadsheet. To create a new template,€Once
the program starts, we go to File / New and then select the option Blank Workboo
k. We'll then display a blank worksheet (Figure 28).
Figure 28. Spreadsheet initial blank.
As we see, the information is organized in rows and columns. Columns are designa
ted by letters and rows with numbers. The boxes of this grid are called cells. G
iven these variables is that diferntes work with the tools, functions and formul
as that Excel provides us. Try now enter the payroll data relating to the calcul
ation of Unit Costs for Excel will help us in visualizing the results. The idea
of this first stage is simply to make contact with the tool.
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Different cost functions
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
s Calculation of Unit Costs
STEP BY STEP
Enter each of the values for the table of results, starting with the titles (pro
ducts, raw materials, etc.).
Try to change the appearance of this form. The first will change the width of th
e columns so that the texts of each cell are displayed in full. Position the mou
se pointer on the line that separates one column from another. The pointer becom
es a double arrow. Press the mouse button and hold it down, move left or right t
o increase or decrease the width. Finally release the button.
Continuing with the aesthetics of the template, draw dividing lines in each cell
. Select the appropriate cells and then click the Borders.
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Enter the data to Excel spreadsheet
Now add the total hours column. To do this, select the column F and go to the In
sert menu / Columns.
After adding the title of the column, apply a simple formula for obtaining the t
otal hours. What you have to do is type in cell F2 a formula that represents the
expression X Check Volume Expected Normal Male Unit. In this case it = D2 * E2.
Press the ENTER key.
According to this first example, we can deduce that the formulas always begin wi
th the equal sign (=) and that the terms involved in
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Different cost functions
You can also change the font of the titles of each column or convert the text in
bold. Finally, use the key combination SHIFT + ENTER within each text cell to d
ivide into two or more lines the contents of each cell and narrow the width of t
he columns.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
the calculation indicated by the coordinates (column + row) of the cells that co
ntain the information. Now apply the formula to other cells. Place the cursor on
the cell containing the formula will be extended (cell F2) and support the mous
e pointer on the square dot is located in the lower right corner of the cell. Cl
ick and hold the mouse button. Turn the mouse to cell F4 and release the button.
It remains to indicate a final formula for the total column. Place the cursor in
cell F5 and apply the formula = F2 + F3 + F4.
To perform this type of larger amounts may also apply the formula = SUM (F2: F5)
inside the cell F5. In this case, use the SUM function in Excel to get the resu
lt. Then include the budget for expenditures in a separate cell, which will asse
ss the application rate. He also believes the column Rate of Implementation.
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Enter the data to Excel spreadsheet
In turn, this in each case multiplied by the hours unit, to obtain the indirect
manufacturing costs per product (which can be included in a new column, as shown
in the picture).
Continuing with the previous return, include one more column to the total amount
of raw materials, application modules and indirect manufacturing costs.
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Different cost functions
Finally perform the corresponding formula in each cell, dividing the man-hours p
er total hours.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
Now you can also add a new column with the volume.
As shown in the example, the volume title and the title total cost calculation u
nit visually occupy a cell. To do this select, starting from the cell that conta
ins the original title, the cells that you want this title to occupy. Once ident
ified, press the Merge and Center button in the toolbar.
Finally, save the template from File / Save As .... From the menu that appears,
specify the destination folder of the template and a name for it.
Now get in line with data obtained from the Unit Costs Result Tables that corres
pond to each field: Output Control / Staff Decision.€Both results coincide. Only
show differences in the treatment of Costs and Expenses. Now for the mathematic
al training of Control and Decision Tables.
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Enter the data to Excel spreadsheet
Control • • • • • Actual volume ion - V. Normal x (CIF + MOD) • Result: Margin -
Fixed Costs + On - Various application functions Sub Costs 43
Decision • Sale: •: Raw Material Cost x Units Sold osto • • • ion • Result: Marg
in - Fixed Costs
Figure 29. Control and Decision.
s box score
STEP BY STEP
The resulting box contains 3 columns, detailing:
The number obtained in the row Sale of Control Result column is the sum of actua
l selling price of each product:
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
In Decision Outcome reiterate the same value, multiplying by 1. The data obtaine
d in cell production cost arises from the sum of the total cost of each product
multiplied by the volume.
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Enter the data to Excel spreadsheet
Margin is the subtraction in each case of the sale on Cost of Production.
The next point (Sub-application) comes from multiplying the sum of indirect manu
facturing costs and direct labor for each product by subtracting the actual volu
me and normal volume of each product.
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Different cost functions
The value obtained in cell production cost decision score column is the sum of t
he multiplication of the raw material of each product by volume.
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COSTS: CALCULATION AND ANALYSIS WITH MICROSOFT EXCEL
As mentioned above, the fixed cost comes from adding the direct labor to indirec
t manufacturing costs as follows:
Finally, the Control score is the sum of the value obtained as the margin and th
e sub-application, while the decision results are subtracted from the margin Fix
ed expenses.
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Enter the data to Excel spreadsheet
SUMMARY ...
We locate the presence of costs in the two fields in which it participates: Cont
rol and Economic Performance. Once highlighted the importance of these two field
s are related, we made a brief description of the actions of costs in the contro
l field. It punctuated the administrative circuits it uses to perform its functi
on and also remember the elements that make up the cost in this field.
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Different cost functions
In this chapter we made an initial presentation of costs that displays it in a g
lobal picture, to deepen the assembly of a table of results is developed under t
he cost criteria used. We also met some of the basic tools that Excel offers us
time to assemble a spreadsheet. With this we closed the process of obtaining cos
ts and various forms of operation in each field.
1
ACTIVITIES
1 Name the fields of business where costs can be found. List four components of
the cost to their oversight role. 5 What term limits spending for
Control
considered cost? 6 What are the components of the cost for its role in supportin
g the decisions?
Interpretation
Raw Material Control Direct labor fixed costs
Decision
2 What are the administrative channels that uses the cost to fulfill its functio
n of control? 3 What item cost accounting is the main objective of control?
Raw material
7 What should not include the cost of producing ever? 8 How to get the Applicati
on Module?
"Necessary expenses?
Raw Materials
PRODUCTION
Finished product
9 What is the application rate used? 10 What does the phrase "costs and guiding
behavior?
Reception Circuit
Circuit Production
Tour Merchandise Sold Cost
48