When product cost is an estimate instead of a measured number, you find out a job lost money only after it has shipped. cifraHQ captures the real materials, labor, and overhead behind every work order and flags the variances that quietly eat your margin.
A big order comes in and the quote goes out against a cost sheet built two years ago. Since then a key raw material climbed, a supplier changed terms, and the extra rework that product always needs never made it into the number. The order ships, the customer is happy, and only at month-end does anyone realize the job barely broke even. Costs that live in someone's memory instead of the system are costs you discover too late to fix.
Many manufacturers price products based on outdated cost estimates or rough calculations. Without actual cost tracking, you don't know which products are profitable - until it's too late.
A 5% cost increase that goes undetected can eliminate your margin on a product. With proper cost tracking, you see increases immediately and can adjust pricing or processes before damage is done.
Turn real production data into pricing you can defend
Track actual material costs consumed per work order. Compare to BOM standard costs. Identify usage variances.
Record labor hours by work order and operation. Apply labor rates. Track efficiency vs standard times.
Apply overhead costs based on labor hours, machine hours, or other drivers. Full absorption costing.
Maintain standard costs by item. Roll up costs from BOMs. Update standards periodically.
Compare actual to standard. Identify material price variances, usage variances, labor efficiency variances.
Production costs post to GL automatically. WIP accounts, variance accounts, finished goods all connected.
Product cost has multiple components. cifraHQ captures them all.
Raw materials and components that go into the product. Valued at actual cost or standard cost.
Production worker time spent on the product. Hours times labor rate by work center.
Facility costs, equipment depreciation, indirect labor. Applied using overhead rates.
Multi-level BOM costing
Recalculate when costs change
Track changes over time
By product, WO, period
Track every cost element and make informed pricing decisions.