A cost management system makes costing a routine output of the accounting process rather than a separate exercise. The firm designs the cost structure, configures it in the ERP and trains staff to operate it.
Scope of service
- Cost centre and profit centre structure
- Integration of costing with inventory and financial ledgers
- Configuration of standard costs and variance postings
- Month-end costing calendar and controls
- User documentation and training
Regulatory framework
- Cost Accounting Standards
- Companies (Cost Records and Audit) Rules, 2014, where applicable
Typical professional activities
- Current-state assessment
- Design document
- ERP configuration support (Tally, SAP Business One, Zoho, others)
- Parallel run and sign-off
Applicable industries
- Manufacturing
- Automobile & Auto Components
- Engineering
- Pharmaceuticals
- Infrastructure
- Sugar & Agro Industries
Relevant articles and resources
- CAS-2: capacity determination and the cost of idle capacity
- CAS-4: cost of production for captive consumption
- CAS-6: measuring material cost
- CAS-7: employee cost in product costing
- Knowledge Centre: Cost Accounting
The information on this page describes the nature of the service. It is not advice on any specific matter. See the disclaimer.