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If you use Bills of Material, you can reference an activity for each operation resource in a routing. You can roll up and calculate assembly activity costs for all levels of your bills of materials and routings. With the item cost inquiries and reports, you can see your activity costs by assembly and the usage of the activity in the assembly. You can specify a cost type for all of these inquiries and reports and compare your traditional standard costing against your activity-based costs.
Typically, you hold your activity-based costs in one or more cost types. You can evaluate your profit margins, inventory valuation, and activity product costs, by specifying the activity cost type in the Margin Analysis, Inventory Valuation, and Cost Comparison reports.
You can charge and report resources, outside processing, and overhead by activity. You can then analyze and report various business activities, including setup, teardown, inspection, and so on.
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