Menu Close

Costing control tool

Build job cost from records the factory can defend

A costing model is credible only when its quantities, rates and allocations can be traced to operating and financial evidence.

Define the costing question

State whether the worksheet supports quotation, standard cost, actual job cost, inventory valuation or margin review. Do not mix measures that answer different decisions.

Record material evidence

Capture approved BOM quantity, actual issue, return, substitution, scrap, yield and rate source. Explain each material variance rather than hiding it in a single total.

Record conversion evidence

List labour, machine, setup, outside processing and other conversion drivers with their source and period. Use a level of detail the operation can maintain consistently.

Reconcile the job

Compare finished quantity, rejection, rework and remaining WIP with material and conversion records. Resolve open movements before using the result for pricing or margin decisions.

Review margin responsibly

Separate volume, price, material, yield and conversion effects. Assign actions to controllable causes and retain the worksheet evidence for the review period.

Practical worksheet

Worksheet fields

  1. Costing purpose and period
  2. Finished, rejected and reworked quantity
  3. Material issue, return and scrap
  4. Labour and machine basis
  5. Outside-processing cost
  6. Overhead method and rate source
  7. Open WIP and reconciliation
  8. Sales value and explainable margin variance

Frequently asked questions

What should manufacturing job cost include?

It can include material, labour, machine, subcontracting, scrap and overhead, but the exact model should match the decision and available evidence.

Why does ERP margin differ from finance?

Differences commonly arise from timing, unposted movement, WIP treatment, rate sources, overhead allocation or incomplete job closure.

How often should manufacturing cost be reviewed?

Review frequency should match the production cycle and decision need, with formal reconciliation before results are used for pricing or financial reporting.