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.
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
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
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