BILL OF MATERIALS (BOM) MANAGEMENT AND COSTING
In the above printout, a BOM has been created for a cheese cake a bakery is producing. In it, raw materials that are used, their quantities and costs and the total material costs are shown. Below it, other costs involved in its production are specified to arrive at the standard cost. CARAT PPLAN then calculates the profit/loss based on the unit price less the standard cost and gives a prodit/loss percentage as well.
At a glance, you can decide if it is feasible to produce the cake. If not, you can either increase the unit price or lower the costs until an optimum profit can be obtained.