I am facing a problem to calculate cost of production target or operating cost
target of an item before its production runs. It will be used in the standard cost.
The cost of production is used to calculate CBR (Cost benefit ratio)
where its calculation formula:
CBR = [Revenue of the alternatives - revenue of current process] /
[operating cost + investment cost - operating cost of current process]
I appreciate your answer so much. thanks in advance
Could you please explain what your actual problem is?
Please remember also that if you have never made an item before, it is unlikely it will be in Navision, but this should not prevent your business from accurately costing the item. In most businesses that use Navision the physical calcualtion of the standard cost is performed ultimately outside of the system.
Dear Steven, All,
we would like to calculate cost of production as we have seen in detailed calculation report. You could see it if you have time. Also I’ve seen your answer to my question always not complete and hard to understand. If maybe you have time, don’t answer by telling us ask local NSC, as we know that most of their consultant seems money seeker.
You are asking extremely in-depth and complex issues and to be honest this forum is not the best place to ask them - your NSC can sit down and talk to you about the best way forward with all issues and considerations brought to the table, this forum can give you advice but only from what you ask. It would be remiss of me not to point this out. If your NSC’s are a bunch of money grabbers go elsewhere.
You asked an original question, you have now clarified this by stating “as we have seen in the detailed calcualtion report”. This was not in your original posting - am I supposed to guess? This report looks at the routing line and the material. If it is missing something you will need to modify it.
Ultimately I am still not sure what your actual issue is - where does the report let you down? Feel free to get offended if you want, it may simply have an inverse affect on my answers to you.