#direct material

How do you manage "silent slopes?"

“Clearly, tariffs will raise costs for imported and domestic raw materials (steel, aluminum, plastic resins, wood, paper, etc.). We should all be prepared when suppliers cite these cost increases to justify higher prices for the products they sell us. Preparation includes detecting supplier “Margin Creep” (Silent Slopes) – the common practice of raising prices more than required to cover their…

ต้นทุนการผลิต คือ อะไร ? และ ต้นทุนการผลิต ประกอบด้วยอะไรบ้าง ? (more…)

last week we are just picking customers but now customers picked us. 

In this week, we follow-up our business proposals to our valued customer but only 1 customer faced us because others are busy with their meeting. So that customer asked for costing so that they will help us to convince their financial manager to approve our proposal. Since we don’t have enough idea about costing so i asked my friend who graduated in Business Management at Xavier University, she help us what to do about our costing, she said that every price of the product consist of: direct material, direct labor, and factory overhead and sum it up to have our product cost. In my understanding based on what she said, our direct material will be the payment for our server, also our direct labor will be the programmers salary, and lastly our factory overhead will be our acquisition cost.