Cost Subelements
You can use subelements as
smaller classifications of the cost elements. Each cost element must be
associated with one or more subelements. Define subelements for each cost
element and assign a rate or amount to each one. You can define as many
subelements as needed.
Material Subelements –
(a) Classify
your material costs, such as plastic, steel, or aluminum.
(b) Define
material subelements and assign them to item costs. Determine the basis type
(allocation charge method) for the cost and assign an appropriate amount.
Material Overhead Subelements
-
(a) Define
material overhead subelements and assign them to item costs.
(b) Determine
the basis type for the cost and define an appropriate rate or amount, such as
purchasing, freight, duty, or material handling.
Resource Subelements –
(a) Define
resource subelements.
(b) Determine
the basis type for the cost and define an appropriate rate or amount.
(c) Each
resource you define is a subelement, can be set up to charge actual or standard
costs, and may generate a rate variance when charged.
Overhead Subelements –
(a) Define
overhead subelements and assign them to your item costs.
(b) Determine
the basis type for the cost and define an appropriate rate or amount.
(c) Overhead
subelements are applied in the routing and usually represent production
overhead.
(d) You
can define overheads based on the number of units or lot moved through the
operation, or based on the number of resource units or value charged in the
operation.
Outside Processing Subelements
–
(a) Define
outside processing subelements.
(b) Determine
the basis type for the cost and define an appropriate rate or amount.
(c) This
subelement is associated with the outside processing cost element and represents
service provided by suppliers.
(d) Each
outside processing resource you define is a subelement, may be set up to charge
actual or standard costs, and may generate a purchase price variance when
charged.
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