TY  - JOUR
AB  - The product‐costing techniques developed for conventional job shops
are unsuitable for use in computer‐integrated manufacturing systems
(CIMS) and their continued use in the CIMS environment generates
incorrect and misleading manufacturing costs. A new cost model
particularly suited for CIMS that also satisfies all financial
accounting requirements is described. The model has two components of
manufacturing cost, direct material cost and transformation cost,
instead of three in the conventional method, and uses actual machine
usage to calculate manufacturing costs. To effect accurate allocation of
the transformation cost, first to each machine and then to the product
that uses the machine, intermediate pooling of costs and different
allocation bases are used. A numerical example is presented to clarify
the steps in the procedure.
VL  - 10
IS  - 8
SN  - 0144-3577
DO  - 10.1108/01443579010143792
UR  - https://doi.org/10.1108/01443579010143792
AU  - Dhavale Dileep G.
PY  - 1990
Y1  - 1990/01/01
TI  - A Manufacturing Cost Model for Computer‐integrated
Manufacturing Systems
T2  - International Journal of Operations & Production Management
PB  - MCB UP Ltd
SP  - 5
EP  - 18
Y2  - 2024/05/14
ER  -