Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A Manufacturing Cost Model for Computerintegrated Manufacturing Systems

A Manufacturing Cost Model for Computerintegrated Manufacturing Systems The productcosting techniques developed for conventional job shopsare unsuitable for use in computerintegrated manufacturing systemsCIMS and their continued use in the CIMS environment generatesincorrect and misleading manufacturing costs. A new cost modelparticularly suited for CIMS that also satisfies all financialaccounting requirements is described. The model has two components ofmanufacturing cost, direct material cost and transformation cost,instead of three in the conventional method, and uses actual machineusage to calculate manufacturing costs. To effect accurate allocation ofthe transformation cost, first to each machine and then to the productthat uses the machine, intermediate pooling of costs and differentallocation bases are used. A numerical example is presented to clarifythe steps in the procedure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

A Manufacturing Cost Model for Computerintegrated Manufacturing Systems

Loading next page...
 
/lp/emerald-publishing/a-manufacturing-cost-model-for-computerintegrated-manufacturing-0VJ0SWPrUh
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0144-3577
DOI
10.1108/01443579010143792
Publisher site
See Article on Publisher Site

Abstract

The productcosting techniques developed for conventional job shopsare unsuitable for use in computerintegrated manufacturing systemsCIMS and their continued use in the CIMS environment generatesincorrect and misleading manufacturing costs. A new cost modelparticularly suited for CIMS that also satisfies all financialaccounting requirements is described. The model has two components ofmanufacturing cost, direct material cost and transformation cost,instead of three in the conventional method, and uses actual machineusage to calculate manufacturing costs. To effect accurate allocation ofthe transformation cost, first to each machine and then to the productthat uses the machine, intermediate pooling of costs and differentallocation bases are used. A numerical example is presented to clarifythe steps in the procedure.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: Aug 1, 1990

There are no references for this article.