1. Attribute Based Product Costing
• In legacy environments, product costing is determined by
two factors:
– component usages in a bill of material structure
– Resource usages in a routing
• Standard costs or derived average costs are then derived
from the use of these factors
• Reporting for Variance, Efficiency, Cost of Scrap and Waste
are all based on these constructs.
• Any Master Data design that moves to an attribute based
model, where selections for finish, hardware and size are
no longer unique components, must take into account the
overall company information requirements and design.