Financial Education - Disadvantages in the administrative process of cost determination

The situation described in my last publication does not escape the lithographic companies, particularly those engaged in the production of stamps made of wood, various shapes and other materials, according to the customer's requirements.

According to previous visits and preliminary interviews with the owners of these entities, disadvantages can be observed in the administrative process for the determination of costs and the inadequate allocation of materials in the production process.

As well as the lack of time control of the workers, for the imputation of labor, problem in the allocation of indirect costs, since for them there is no format to register the manufacturing load of the product, due to the fact that the meticulous control of the resources of this one is inadequate.

Consequently, it could be indicated that if the above situation is not solved, the probability that the company's efficiency will not be as expected could increase. This could be caused by inadequate allocation and lack of control of the material to be used in the production process, lack of control of workers' time for the allocation of labor costs, problems in the allocation of indirect costs.

There is a lack of personnel to comply with the pending work, lack of interest in the rational use of the material to be used in the manufacture of the product; lack of an internal accountant that prevents having accurate and timely information of the costs when they are required; there is also no personnel to supervise the workers, for the due compliance in the time required for the manufacture of the product.