Cost Analysis Where can you obtain the material costs? The cost of material is contained in the invoice or purchase order, which can be obtained through the purchasing department in the organization. The material cost can also be found in the manufacturing account. Where can you obtain the labor costs? Labor cost is available in the union contract, human resource document, and employee’s personal contract. Any or all of these contracts would identify costs associated with labor. The financial statement (income statement) will carry the total labor cost traceable to a particular period. Where can you obtain the indirect costs? Indirect costs are expenses that cannot be linked directly to the finished goods. The cost of factory overhead such as supervisor and depreciation are indirect costs to be identified in cost analysis. This information may be contained in the financial statement. What can you use to justify the profit rate? Profit rate can also be construed as the desired returns on investment. The duration of a project
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- Fall '16
- Logistics, profit rate