bom

[Former Member]

hi,

from costing standard point, what is the use of bom?

thanks

rgds

[Former Member]

Hi,

BOM is used for costing FG Product for example to Produce one Finished product i.e Car you need Different Raw Materials i.e Engine , Tyres, Steering, Car body etc.. This all are known as BOM For product Car. Inthis way for making one FG Product their need 3 or 4 raw materials. While doing costing This BOM is taken for costing all material to produce one FG product.

Regards,

Sreekanth

[Former Member]

Hi,

thanks and point given.

but how do we do the costing base on the bom? in the bom there is no cost defined.

thanks

rgds