Company Owners Must Know About Product Traceability

Product traceability is related to the cost object based on the direct searches, resources driver, and allocation of resource funds. methods, direct search is the most accurate method; this method relies on causal relationships that can be physically observed going here. Search for drivers takes place on things that cause, that is, drivers (drivers), to allocate funds to cost objects. The accuracy of locator tracking depends on the level of quality of the causal relationship described by the mover. Analyzing the drivers and calculating the quality of causal relationships is very costly compared to direct tracking or allocation. Allocation is the basic method used and the funds used are the least. On the other hand, if you also own a freight yard and you want to keep your eyes on your assets easily, we suggest you try the best Yard management system.

However, but the allocation is the way in which the lowest level of accuracy is charged and its use is kept to a minimum.

Traceability is the ability to allocate funds to a cost object properly, economically through a causal relationship.

Direct costs are direct costs that can be easily and accurately known to cost objects. Example: all operational costs are direct.

Indirect costs are indirect burdens that are difficult to track accurately to cost objects. Example: indirect costs (costs for maintenance of equipment) and indirect labor costs (cleaning workers, security workers).

Tracing is the allocation of costs to a cost object using a measuring instrument that can be observed from the resources used by the cost object. The following is the tracking of costs to cost objects can be done with the method approach:

Direct tracing is the process of analyzing and charging costs that can be done specifically and physically related to a cost object. Generally done through observation as well as physical.

Indirect tracing is the use of movers to incur costs on the cost object. Activator is one of the factors causing the measurable consumption of resources by objects. Although it is not as accurate as direct tracing if the causal relationship is good.

Resource drivers: a way of measuring the demand for resources to activities, used to allocate resource costs to activities.

Activity driver: how to measure activity requests by cost objects, used as an allocation of activity funds to cost objects.

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