Production cost of a service center in the industrial sector

Abstract

This work addresses cost management in the industrial context, focusing on This study examines cost management within the industrial context, focusing on various costing methodologies and their practical applications. It underscores the critical role of cost characterization in planning, control, and managerial decision-making, with particular emphasis on Activity-Based Costing (ABC). ABC enables a detailed analysis of operational costs by segmenting operations into specific activities, offering greater precision for cost allocation. The study explores alternative costing methods, such as absorption costing, which assigns both direct and indirect costs to goods and services. It notes that the selection of the appropriate costing method depends on managerial informational needs, while highlighting ABC as particularly advantageous for achieving detailed cost management insights. Additionally, the research addresses the calculation of electricity costs in industrial processes, incorporating machine power, operational time, and energy rates. Depreciation is analyzed as a key component of operational cost assessment, with a discussion of its various calculation methods. Maintenance costs are also evaluated, emphasizing their impact on production efficiency. Different types of maintenance—corrective, preventive, and predictive—are reviewed, along with the importance of effective maintenance cost control to enhance business competitiveness. Lastly, the study discusses work schedules and their regulation under the Consolidation of Labor Laws (CLT), highlighting the importance of accurate scheduling for operational efficiency and compliance with labor standards.