Resource Costing based on Fixed and Variable
Hello - we have the business case as follows
- Customer is creating the BOM in discrete MFG
- They have fixed batch size though which is 3000 qty.
- However they have of the resource (HOT ROOM) which takes almost 24 hours to complete.
- so meaning fixed cost of $150 x 24 = $3600
- but they wanted to allocate this $3600 based on 1 QTY as per BOM and therefore rolled up cost must be based on 1 qty
- Also, there are many cases where the batch size also changes till 2000 or 1000 instead of 3000. In this case, they wanted to allocate $3600 which is fixed.
- Therefore, this is a challenge whether we should keep the USAGE is fixed or Variable. In either case, our rolled up cost cannot be based on unit since this becomes a hybrid kind of scenario