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The most important issues for manufacturing companies are control and detailed analysis of the prime cost of the manufactured products, including control over the product yield, control of the prices of raw materials utilized in the manufacturing process, determination of the overhead cost norms, including with due account for the seasonal factors, as well as optimization of the manufacturing costs and detailed analysis of such important items as raw materials and materials used, labor resources, auxiliary materials, and other overhead expenses.
Development of the proper control mechanisms, availability of a well-functioning reporting system, and appropriate planning and management of financial resources are also important for the manufacturing companies.
a detailed analysis of production, allowing control of the prime cost of the finished products, the loss norms, product yield, the labor resources used in production, and all the major expenditures. Also, a well-organized budgeting system will allow you to pre-determine all of the company’s significant expenses and duly respond to each deviation. An effective reporting system will allow you to make proper financial decisions, including with regard to such important issues, as capital investments – procurement of a new production line or replacement of the outdated fixed assets. You will also be able to evaluate the efficiency of each product manufactured by you and make the right decision with regard to each product (to increase production, to reduce or completely halt its production).
