Manufacturing & Engineering
The accounting for these businesses is much more detailed than is required for a business that maintains no inventory. Do you need to handle inventory valuation? we provide you with the proper direct cost assignment – standard costing or weighted-average cost or cost layering methodology -, overhead cost assignment – and minimisation of the cost pools into which these costs are aggregated in order to reduce the amount of allocation work – and accurate impairment testing so that the inventory is written down to the market values in case the amount at which inventory items are recorded is higher than their current market values.
Do you have to recognise cost of goods sold? we provide you with a detailed scrap tracking procedure and identification of job costing so that excessively charged cost of goods sold can be monitored and thus lowered.