Bachelor’S Degrees In The Industrial Area

Bachelor’s degrees in the industrial area

Introduction

Any industrial activity or provision of services that an organization performs incurs an expense which consists of different elements that must be taken into account to determine the price of the product or service offered, as well as the cost of the operations that have beendeveloped during productive activity. The cost will know how much it costs to invest in the production of a product or service. The cost then is the sum of all disbursements used for the elaboration of a product or service provision, which are classified into three material elements, labor and manufacturing load.

Developing

Materials: are all the physical components used to develop a product through its transformation. Which can be found in their natural state or processed by man. Labor: It is the human, physical or mental effort used to produce a good, by transforming materials. Indirect expenses: are all costs that cannot be identified directly with the product, such as rentals, public services (water, light, telephone), insurance, depreciation of fixed assets, including indirect materials and indirect labor, depending on theCost system that is being used.

Control the costs of a service or product are the foundations that determine the profit margin and as a result a productive efficiency of companies. The type of control that is established will depend on the needs of the organization, the benefits will be marked by how we manage our resources and the value of these.

Controlling costs is confused with reducing them, cost control properly will contribute more than benefits for the good health of a company. Now to be able to reduce the costs we must first carry good control of them.

Cost control benefits

Knowledge and identification of each cost, which simplifies its classification, the planning of the production, manufacture of the products or services improving decision making, improving productivity, optimizing the management and administration of resources available for the organization, reduction of reductionIn raw material, maintaining a minimum stock control, it is reduced to storage and storage cost, it will avoid the waste and waste of raw material.

Identify whether the products produced are profitable, therefore, the cost controls immersed in their production will help us make future decisions about these products, such as their exit or their permanence in the market. The improvement of costs should not impact the quality of the products or services offered. Cost management must be reasonable and timely in such a way that it will facilitate the access and availability of resources to be used in the production or provision of service.

conclusion

Access to information, allows access to quantitative costs of costs allows you to have information a day about the health of the organization. Inventory control will manage the good administration of our inventories, planning a better production capacity. Controlling costs is essential for the good direction of companies giving better knowledge of where resources were invested, and in which they were transformed. It allows us to decide whether to enhance or eliminate a certain line of business, accept or not orders of a certain type of customer, since we will know our production and delivery capacity. Exploit new sales channels, reduce costs, subcontract services or products, set prices or establish discounts policies.

References

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