Manufacturing Column > 10 Points for Building a Production Management System: '10. Production Information Necessary for Cost Management'
Manufacturing Column > 10 Points for Building a Production Management System: '10. Production Information Necessary for Cost Management'
There are two cost management methods: standard costing and actual costing. In the standard costing method, standard cost values are set, and the monthly cost is calculated based on the processing volume. The actual expenses incurred are then reconciled to determine the cost variance, which is aggregated over a certain period and allocated to cost of goods sold, product costs, and work-in-progress costs. In the actual costing method, the actual cost is determined based on the processing volume and the actual expenses incurred, resulting in no cost variance. Therefore, actual costs are considered to be the "true costs," but within actual costs, there are elements such as price, efficiency, and operating level that randomly mix and influence costs, requiring careful attention. (You can view the continuation of the column from the catalog download.)
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There are two cost management methods: standard costing and actual costing. In the standard costing method, a standard cost is set, and the cost for the monthly financial statement is calculated based on the processing volume. This is then reconciled with the actual expenses incurred to determine the cost variance, which is aggregated over a certain period and allocated to cost of goods sold, product costs, and work-in-progress costs. In the actual costing method, the actual cost is determined based on the processing volume and the actual expenses incurred, and no cost variance occurs. Therefore, actual costs are considered to be the "true costs," but within actual costs, there are elements such as price, efficiency, and operating levels that randomly mix and affect costs, requiring careful attention. (You can view the continuation of the column from the catalog download.)
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At Kobelco Systems, we have inherited the commitment to "monozukuri and quality" from Kobe Steel, which has a history of over 100 years in the manufacturing industry, and we have fused it with the "know-how of innovation" possessed by IBM, a global leader in the IT industry. Leveraging this diversity and synergy, we have been active as a company embodying "Japanese spirit and Western talent," responding to various needs of our customers. Recently, the remarkable evolution of technology, including AI, has brought about significant transformations in society and has become a source of corporate competitiveness. In this context, we continue to pursue self-transformation to fulfill our responsibilities and roles, while enhancing our unique value and consistently delivering that value. "Our purpose is to cherish all people, support individual challenges and growth with advanced technology and the power to create, and build a fruitful tomorrow." This is our reason for existence and our promise to society. We value all stakeholders who support us, including our customers, collaborative partners, shareholders, local communities, and employees and their families, and together with everyone, we will build a fruitful tomorrow.