net Cost Construction™ is the product within the net collection™ responsible for building cost structures. net Cost Construction™ integrates with net Resource Manager™ enabling the entry of up to eight plant-based costs for all purchased products, labor resources, and overhead cost elements. These independent costs are summed immediately during the building of the bill of resources, giving the product development staff immediate cost for new products and “what if” cost for changes to existing resources.

     net Cost Construction™ rolls the resources into a budget cost file that is stable during fiscal periods and allows an infinite number of user-defined cost files to be used for management analysis. The detail resource cost is maintained, as are high-level cost group/category summarization tables. These files are available to be selected for immediate inventory and work in process valuations, as well as for purchase price and manufacturing in-process variance analysis.

BUSINESS FUNCTIONS
Plant Specific Resources Cost Matrix Entry
Bill Of Resource Integration for Immediate “What If” Cost
Resource Budget Cost File
User Defined Cost Files
Cost Group/Category Cost Files
Fixed Cost Allocation Method/Distribution to Machine Hour Basis
Net Change Additions of New and Changed Products

net Cost Construction™ provides infinite cost allocation methods to distribute fixed costs to activity centers (departments) with calculation of these fixed costs detailed to a machine hour basis and automatically build into the bill of resources.

     net Cost Construction™ detects new resources as well as changes to existing resources within net Resource Manager™ and affords the user the ability to execute a net change roll up to the cost files. The net change filters all impacted resources and gives the user the opportunity to select or omit the changes within the live cost files. The cost files provide the base line for all immediate financial comparative analysis.