Top Cost Reports

Cost reports can be created from the cost system after cost information is setup and then maintained in the system. Most companies that use cost accounting use an MRP or ERP system to collect information and report costs.

Cost accounting reports are for the company's management and are rarely if ever shown to anyone outside the company. The reason for this is that the information about a company's product or service is secret and this information must be kept from competitors.

Many cost reports can be created from a cost system. The most popular reports are listed below, however, the cost accountant will be asked to create many unusual and specific reports based on information needs that come up.

Here are the most popular reports (click on the report name to learn more about that specific report):

An MRP or cost system will have a number of reports that are able to be run directly from the system. However, no system will have exactly the reports you want or be exactly in the format you want. So, it is necessary to have the ability to create or edit reports in the system, and also to have the ability to download information to Excel or some other spreadsheet program.

Many cost systems allow the user to save reports in CSV format. This information file can then be parsed into Excel. Parsing involves placing column markers in the csv file and then saving into an Excel format.

Once information is in Excel format, then the cost accountant can manipulate the information with formulas and can cut and paste information into a professional looking report.

How are good reports made?
  • The cost system needs good inputs
    • Floor reporting needs to be accurate
    • Material costs need to be up-to-date
    • Revenue pricing needs to be up-to-date

  • Remember: Garbage-in, garbage-out

  • The burden allocation needs to be fair and reasonable