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Former Member
Jan 02, 2008 at 08:54 AM

royalty cost in product costing

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Hello CO gurus,

I would like to take advise from you all regarding royalty cost to handeled in product costing.

The client is manufacturing a product , they are laible to pay a fixed amount of loyalty on every piece of product manufactured. How to handel this kind of cost ??

This loyalty is not a overhead which can be charged to finished good as the amount is fixed per quantity of finished good.

Secondly if automatic laibity could be created for this royalty expenditure then this would be perfect solution??

Thirdly whether this laibity expenditure could be part of BOM, if yes, how??

Regards,

Anand Agrawal