Indirect Costs

Only the manufacturing cost centers are entered into the cost center file. The auxiliary cost centers must be processed beforehand in the budgetary procedure. The latter must be able to calculate the total fixed costs added to each of the manufacturing cost centers which will be allocated to the products, based on the labor and/or machine standard hours.

Examples:

•      The maintenance costs can be entered under the heading MAIN in the form of total workshop fixed costs,

•      The industrial rent (cost of the shop-floor space) can be entered under the heading RENT in the form of total workshop fixed costs,

•      The cost of the training can be entered under the heading TRAI in the form of total fixed costs of labor.