Persuasive Metamorphosis of Manufacturing Overhead at The Golden Doors of Disparaging Uttermost Cost of Goods
Keywords:
Factory overhead, Absorption, Production unit, Fixed cost, Calculated periodAbstract
Manufacturing overhead is applied to the units produced within a reporting period. This is not a direct cost of a product. As like as labor cost, product cost, manufacturing overhead has to enlisted with the system so that we can get good output from inventory management. In every sector of business, there is a big illusion of absorption with the sight of over absorbed and under absorbed product costs. The absorption is under the Generally accepted accounting principals (GAAP), where the absorption cost can be applied and count too. Manufacturing overhead is not a danger, but it’s a problem for us in many purposes of business. This paper is going to give a suitable solution to this problem with the tools of business and technology. This paper will also create a connection between business and technology again by which we will see the impact of technology in business. We are going to see that the actual of cost using FIFO, LIFO, etc. This paper aims to show something new by which the business sector can get the best solution for this manufacturing overhead matter. In case, we all know that many things are related to this matter. Such as factory burden, production overhead, factory overhead, etc. We will role these things with the sight of business and computer science.
References
Garwood, T. L., Hughes, B. R., Oates, M. R., O’Connor, D., & Hughes, R. (2018, January 1). A review of energy simulation tools for the manufacturing sector. Renewable and Sustainable Energy Reviews. Elsevier Ltd. https://doi.org/10.1016/j.rser.2017.08.063
Oluwagbemiga, O. E., Olugbenga, O. M., & Zaccheaus, S. A. (2014). Cost Management Practices and Firm’s Performance of Manufacturing Organizations. International Journal of Economics and Finance, 6(6). https://doi.org/10.5539/ijef.v6n6p234
Kim, H., Ahn, S., & Ulfarsson, G. F. (2018). Transportation infrastructure investment and the location of new manufacturing around South Korea’s West Coast Expressway. Transport Policy, 66, 146–154. https://doi.org/10.1016/j.tranpol.2018.02.016
Jiang, L., Walczyk, D., McIntyre, G., & Chan, W. K. (2016). Cost modeling and optimization of a manufacturing system for mycelium-based biocomposite parts. Journal of Manufacturing Systems, 41, 8–20. https://doi.org/10.1016/j.jmsy.2016.07.004
Abu, M. Y., Jamaludin, K. R., & Zakaria, M. A. (2017). Characterisation of activity based costing on remanufacturing crankshaft. International Journal of Automotive and Mechanical Engineering, 14(2), 4211–4224. https://doi.org/10.15282/ijame.14.2.2017.8.0337
Snead, K., Stott, D., & Garcia, A. (2010). The causes of misapplied capacity related manufacturing costs and corresponding reporting implications: A conceptual perspective. Journal of Accounting Education, 28(2), 85–102. https://doi.org/10.1016/j.jaccedu.2011.02.001
Huang, Q. (Ivy). (2018). Skylar, Inc.: Traditional Cost System vs. Activity-Based Cost System – A Managerial Accounting Case Study. Applied Finance and Accounting, 4(2), 55. https://doi.org/10.11114/afa.v4i2.3496
Morariu, O., Morariu, C., & Borangiu, T. (2016). Shop-floor resource virtualization layer with private cloud support. Journal of Intelligent Manufacturing, 27(2), 447–462. https://doi.org/10.1007/s10845-014-0878-7
