Small excerpt from the fourth meeting of the Controlling course “The cost of sales budget”.
What is the potential of a COG budget for analyzing and evaluating product and sales margins?
It is appropriate to take an additional step beyond reclassification, using a budget structure that includes management accounts. Especially for the part related to logistical movements and by material type.
Only in this way will the budget be able to communicate, in an immediate way, the cost of various logistics activities such as inventory counts, consumption for rework, scrapping, etc.
