Item Cost Analysis
The Item Cost Analysis Report provides insights into the cost structure of manufactured items. It displays the item to be produced, the number of manufacturing orders created for the item, the average operation cost, and the average component cost. This report is useful for analysing production costs, comparing cost efficiency across items, and identifying opportunities to optimize manufacturing and material expenses.
| Cost Type | Formula | Description |
|---|---|---|
| Average Operation Cost | Total Operation Cost of all MOs for an Item ÷ Total Quantity Produced for the Item | Calculates the per-unit cost of all operations involved in producing the item. |
| Average Component Cost | Total Component Cost of all MOs for an Item ÷ Total Quantity Produced for the Item | Calculates the per-unit cost of all components used in producing the item. |
Access Item Cost Analysis Report
To access the Item Cost Analysis report:
- Go to Reports on the left sidebar.
- Under Report Category, navigate to Manufacturing.
- Select Item Cost Analysis.