Title: Product costing practices in the North American hardwood component industry
Author: Andersch, Adrienn; Buehlmann, Urs; Wiedenbeck, Jan; Lawser, Steve.
Source: In: Proceedings of the 3rd international scientific conference on hardwood processing; 2011 Oct. 16-18; Blackburg, VA. Blacksburg, VA: Virginia Polytechnic Institute and State University: 135-145.
Description: Companies, when bidding for jobs, need to be able to price products competitively while also assuring that the necessary profitability can be achieved. These goals, competitive pricing and profitability, cannot be reliably achieved unless industry participants possess a full understanding of their company's cost structure. Competitors blame companies without detailed knowledge of their company's cost structure for submitting bids that are priced unreasonably low, thereby making it harder to achieve the necessary profitability. To better understand the product costing practices of North American hardwood dimension and component manufacturers, a mail survey was conducted. A total of 495 companies were contacted and 74 valid responses were obtained for a response rate of 16%. Most respondents gather primarily financial information from their current costing system. Respondents use the financial information to create financial reports, tax reports, inventory valuation, and to calculate the cost of their product. A majority of respondents (74%) reported using a traditional cost accounting system, 13% an activity-based cost accounting system, 4% a lean accounting system, and 9% of respondents indicated using a proprietary system.
View or Print this Publication (458 KB)
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
- This publication may be available in hard copy. Check the Northern Research Station web site to request a printed copy of this publication.
- Our on-line publications are scanned and captured using Adobe Acrobat. During the capture process some typographical errors may occur. Please contact Sharon Hobrla, firstname.lastname@example.org if you notice any errors which make this publication unusable.
Andersch, Adrienn; Buehlmann, Urs; Wiedenbeck, Jan; Lawser, Steve. 2011. Product costing practices in the North American hardwood component industry. In: Proceedings of the 3rd international scientific conference on hardwood processing; 2011 Oct. 16-18; Blackburg, VA. Blacksburg, VA: Virginia Polytechnic Institute and State University: 135-145.
Get the latest version of the Adobe Acrobat reader or Acrobat Reader for Windows with Search and Accessibility