To make it easier to enter specific job cost details, a separate file holds standard activities such as "Photocopying”, "Cutting”, "Stock issue”, "Packing” and so on.These activities, known as cost codes, specify to which categories the activity normally applies, the standard cost to be charged for the activity per unit, and any other details about the activity which may be needed for analysis purposes.
For most job costing requirements the most numerous activities are the time charges incurred by employees. Each employee whose time is to be costed against jobs is also entered under a cost code in the cost code file. For an employee the factors required are the standard and overtime hourly rates to be charged. Details about the payroll are needed when the hours entered into the job cost system are to be transferred across to the payroll for wage calculation purposes.
If an employee is involved in a number of different activities which are charged out at different rates, then you could set up more than one cost code per employee.However, it is usually easier to have one code per employee, and to set up other costs codes to represent the different activities. In that way a distinction is maintained between employee codes and cost codes.
On selection of the ‘Maintain Cost Codes’ option you are given options to add new cost codes and to amend and view existing cost codes.
Article ID: 741
Created On: Mon, Jun 25, 2012 at 10:23 AM
Last Updated On: Mon, Jun 19, 2023 at 10:45 PM
Online URL: https://kb.datafile.co.uk/article/maintain-cost-codes-741.html