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What are common mistakes made in production costing of the product ?

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Question ajoutée par PRADEEP MEHRA , CEO , Angel international Inc.
Date de publication: 2016/06/08
Rami Assaf
par Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanks for invitation

one of mistake in direct cost to calculate raw material depending on material cost in store, without calculate any incresing may happen

also if they didn't calculate labor cost that incurred to produce such an item. Indirect costs include overhead such as rent, salaries or utility expense

 

Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thank for invitation

Mistakes are as follows:

1.Company failing to segment their customers

2. Company basing their prices on marketplace

3. Company basing their prices on their costs and not their customers perceptions of value

4 Company changing prices without forecastingcompetitors reactions.

5.Company attempting to to achieve profit margin across different  different product lines.

Utilisateur supprimé
par Utilisateur supprimé

Thanks for invitation..

Mistakes may happen in Valution of Inventories (Changes in method of Valuation & Non Consideration of Currenct Market Value), Abortion of indirect costs - Improper Cost Center Accounting), Accounting of Loss (Abnormal Loss not to be charged)..

I leave the answer to experts and specialists in this area .

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

Agree with expert ansewrs above

 

مها شرف
par مها شرف , معلمة لغة عربية , وزارة التربية السورية

I agree with Mr Rami answer's. Thanks for the invitation. .

Ghada Eweda
par Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

A good answers given by experts  Mr. frank mwansa 

and Mr.Rami Assaf . Thank you 

 

ghazi Almahadeen
par ghazi Almahadeen , Project Facilitator , Jordan River Foundation

Thanks for the invite ............................ agreed with the answers Mr. Rami

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