Budgeting in production.In budgeting in their production, they must be added in the process and production planning because of the budget or the cost of production, it is different from other types of costs, such as purchase and sales. A production budget in the costs arising from the receipt of a purchase order from the customer and the sales department. There are various aspects of budget distribution, which consists of two main parts: the material cost, which can be viewed from the Bill of material (BOM), the labor costs are excluded, according to the processes and the production time as well as the cost of utilities such as electricity, water, used in the.The rest of the route, it will be a costly labor and other overheads. Budgeting, production must be made carefully, because it is going to affect the profit and sales of products such as if we set a lower production budgets, the actual costs, the profit or loss reduction. If we set too high production budget. The sales price is higher, may affect pricing, sales, and customer orders.
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