October 2017
Intermediate to advanced
806 pages
17h 3m
English
Each business is required to add the operational cost to the cost of the finished product to get the correct cost of the finished product. We have already seen how to compute the cost of a finished product by adding the cost of the components in the Complete the first manufacturing order recipe earlier.
Let's see how to add the operations cost to the cost of the components so that we can have the final cost of the product.
The cost of operations includes the cost of electricity, labor, or any other additional direct or indirect costs incurred to complete the manufacturing operation.
The operations cost can be configured at the work center; you have to derive the Cost per hour for each work center. It includes ...
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