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Jun 11, 2011 at 06:30 AM

Costing in case of Seasonal production

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Dear All,

My client has a product which has got seasonal production i.e. say 6 months.

Now we have implemented costing sheet and assigning overhead as % of RM issued on the production order. Now the depreciation cost and other repairs and maintenance cost incurred during the period the product is not manufactured is remaining unabsorbed on cost center.

How to address this situation as the cost of the product is getting reduced. Kindly provide help.

Regards,

Divraj.