Design of a Cost Accounting System and implementation of a spreadsheet based tool for costing for a leading precision component manufacturing company in India.
MaGC Approach and Methodology
Complexity of the manufacturing processes and the large number of products posed major challenges. The methodology involved field visits to manufacturing and service divisions and structured interviews and discussions with key persons to understand the production processes and related costs. Principles of Process Costing were applied to the client’s case and a tailored Cost Accounting System was designed. The system design was translated into a semi-automated spreadsheet based costing tool. End-user training was conducted as part of the assignment.
The output was a client-specific Cost Accounting System supported by a spreadsheet based costing too. The system provided valuable insights for product-level, process-level, and unit-level cost analysis and facilitated business decision making.
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