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I have a requirement where my client would like to have actuals of shipping related costs shown during cost calculation. It is my understanding I can only setup Indirect cost as a percentage of the Direct material, Direct mfg. and outsourcing. Maybe I'm missing something. Is there something I'm missing that would allow me to meet this requirement? Thank you for your time.
Hi VMVM,
I see it the same way you do.
You cannot include actual costs in your cost calculation that is made before the production is started. Those calculations are always based on estimated indirect cost assumptions.
Once the production is ended then you see your actual costs but only for the direct elements (labor, machine costs, etc.). The indirect elements are also after ending the production based on assumed percentages or amounts. If one would know them, they would not be indirect but direct costs that can directly be assigned to a production ;-)
Best regards,
Ludwig
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