Production & Manufacturing

Know What Every Product Actually Costs to Make

P4 Books tracks manufacturing costs at every step - materials consumed, labor applied, overhead absorbed. Compare actual costs to standards and identify variances before they erode margins.

Full
Cost Capture
Std
Costing
Variance
Analysis
Work Order Cost Summary
WO-2024-0847 | Widget Assembly | 500 EA
Material Cost
$4,250
+$150 var
Labor Cost
$1,875
-$125 var
Overhead
$938
at standard
Total Cost
$7,063
$14.13/unit
The Industry Problem

Guessing at Product Costs Is Dangerous

Many manufacturers price products based on outdated cost estimates or rough calculations.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.

  • Pricing based on estimated costs, not actuals
  • No visibility when costs increase
  • Can't identify inefficient production runs
  • Inventory valued incorrectly on financial statements

The Margin Impact

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.

Cost Tracking Capabilities

Capture every element of production cost

Material Costs

Track actual material costs consumed per work order. Compare to BOM standard costs. Identify usage variances.

Labor Costs

Record labor hours by work order and operation. Apply labor rates. Track efficiency vs standard times.

Overhead Absorption

Apply overhead costs based on labor hours, machine hours, or other drivers. Full absorption costing.

Standard Costing

Maintain standard costs by item. Roll up costs from BOMs. Update standards periodically.

Variance Analysis

Compare actual to standard. Identify material price variances, usage variances, labor efficiency variances.

GL Integration

Production costs post to GL automatically. WIP accounts, variance accounts, finished goods all connected.

Building the Full Cost Picture

Product cost has multiple components. P4 Books captures them all.

Direct Materials

Raw materials and components that go into the product. Valued at actual cost or standard cost.

Direct Labor

Production worker time spent on the product. Hours times labor rate by work center.

Manufacturing Overhead

Facility costs, equipment depreciation, indirect labor. Applied using overhead rates.

Cost Rollup

Multi-level BOM costing

Cost Updates

Recalculate when costs change

Cost History

Track changes over time

Cost Reports

By product, WO, period

Ready to Know Your True Costs?

Track every cost element and make informed pricing decisions.