1. Production flow costing and backflush costing
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Backflush costing
Production flow costing and backflush costing
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. Production flow costing
Value proposition
Production flow costing
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Standard costing
Standard cost , calculated according production flow effective at chosen date
Visibility on cost breakdown per cost element on standard cost and variances
Backflush costing cost accumulation method
Accumulates cost of resources used and consumed , per production flow and period
Periodically, ascertains production cost and records variances for deviations between produced goods standard and actual realized rescource consumptions
Execution can be automated to process given period lenght at a chosen frequency
Production flow cost accounting
Maintains Work in Progress situational awareness per rescources used and produced
Allows flexible configuration for financial reporting to general ledger, for easier reconciliation and analysis of economic performances per business segment,
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

3. Production Flow cost accounting
Schematic of production flow cost accounting
PRODUCTION FLOW
Input ( 1)
Activity
Output ( 2)
Cell
Raw material Inventory
Production flow Work In Progress
Matl Std.Cost ( 1)
Matl. Std.Cost (1)
Absorption
Finished goods
Inventory
Matl Indirect cost (1)
Matl Indirect cost(1)
Cell Mfg Cost (2 )
Cell Mfg. Cost (2 )
FG Std. Cost (2 )
FG Std. Cost ( 2)
Mfg Indirect cost ( 2 )
Mfg Indirect cost (2 )
FG Std. Cost ( 3 )
Realized cost ( 3)
Variance to standard cost
Variance( 3)
Backflush costing ( 3 )

4. CCAX2012BV064