{"id":5175,"date":"2014-12-03T08:19:18","date_gmt":"2014-12-03T06:19:18","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=5175"},"modified":"2014-12-07T15:21:48","modified_gmt":"2014-12-07T13:21:48","slug":"inefficiencies-in-production","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/inefficiencies-in-production\/","title":{"rendered":"Inefficiencies in production"},"content":{"rendered":"<p>Inefficiencies in production are in reality treated differently. There are companies who don\u2019t even know that they\u2019re being inefficient, there are companies who consider inefficiencies as a part of the everyday process and those who treat inefficiencies as something very serious and fight against them.\u00a0<!--more--><\/p>\n<p>Leaving aside how they should be treated in production process and how to fight against such situations, we would focus now on how to account for inefficiencies in production. IAS 2\u00a0<em>Inventories<\/em>\u00a0very clearly states that the costs excluded from the cost of inventories are abnormal amounts of wasted materials, labor or other production costs. Your local accounting framework may see different wordings for it and it may even find occasions when such amounts are in fact included within the cost of inventories, however it\u2019s important to understand that anything not directly related to production, anything that\u2019s exceeding what\u2019s scheduled to be used for production just buffs the production price of the item and isn\u2019t giving you a fair picture of how you\u2019re actually using your materials.<\/p>\n<p>It\u2019s important to understand if and where you\u2019re being inefficient because at the end of the day it\u2019s your money you\u2019re wasting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inefficiencies in production are in reality treated differently. There are companies who don\u2019t even know that they\u2019re being inefficient, there are companies who consider inefficiencies as a part of the everyday process and those who treat inefficiencies as something very serious and fight against them.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-5175","post","type-post","status-publish","format-standard","hentry","category-1-3-inventory"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5175"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5175\/revisions"}],"predecessor-version":[{"id":5176,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5175\/revisions\/5176"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5175"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}