Dear Sir / Ma'am,
Please be so kind and advice how to calculate one hours cost of plant.
We have two type employees, one who gets salary in 28/30/31 days (monthly) basis and other Contract Labour who gets daily rate (26 days).
I also would like to know should we consider only personnel who are involve in manufacturing process or all i.e. HR, Stores, Quality, etc..
Thanks for your efforts.
Best regards,
Parimal
From India, Ahmadabad
4Please be so kind and advice how to calculate one hours cost of plant.
We have two type employees, one who gets salary in 28/30/31 days (monthly) basis and other Contract Labour who gets daily rate (26 days).
I also would like to know should we consider only personnel who are involve in manufacturing process or all i.e. HR, Stores, Quality, etc..
Thanks for your efforts.
Best regards,
Parimal
From India, Ahmadabad
Dear Parimal,
You may go through the books on "Cost Management". In these books, you will get definitions of direct labour, direct material, direct expenses, indirect labour, indirect material and indirect expenses.
Nevertheless, knowledge of the definitions is one thing and accuracy of calculations is another. Therefore, you may hire services of Cost Accountant. Costing is their area of activity.
You have asked about only the manpower cost working in departments like HR, Purchase etc. But then what about inventory of the raw material and finished goods? Can it be included in running cost? What about the cost of stock-out? Should we include this costs as well? Replies to these questions cost account would know.
Thanks,
Dinesh Divekar
From India, Bangalore
You may go through the books on "Cost Management". In these books, you will get definitions of direct labour, direct material, direct expenses, indirect labour, indirect material and indirect expenses.
Nevertheless, knowledge of the definitions is one thing and accuracy of calculations is another. Therefore, you may hire services of Cost Accountant. Costing is their area of activity.
You have asked about only the manpower cost working in departments like HR, Purchase etc. But then what about inventory of the raw material and finished goods? Can it be included in running cost? What about the cost of stock-out? Should we include this costs as well? Replies to these questions cost account would know.
Thanks,
Dinesh Divekar
From India, Bangalore
Mr.Divekar's point is very valid. You can not consider only manpower direct cost, even in manpower cost you also need to consider the canteen, transport, uniform etc.,
In addition to this there are N number of costs involved ie., raw material, electricity, water etc.,
Basing on the above components the cost accountant can finalize the fixed and variable cost of a plants hence better to take the support of a cost accountant so that you can get an accurate data and conclude
From India, Hyderabad
In addition to this there are N number of costs involved ie., raw material, electricity, water etc.,
Basing on the above components the cost accountant can finalize the fixed and variable cost of a plants hence better to take the support of a cost accountant so that you can get an accurate data and conclude
From India, Hyderabad
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