Cost for production orders for the manufacture of aluminum stairs and their impact on price determination.

Abstract

The production order cost system seeks to technify the calculation of the incurred costs in the elaboration of aluminum ladders for a company belonging to the Ecuadorian manufacturing industry. Through this, it will be possible to obtain more exact costs, which will determine the prices that guarantee an adequate profit margin; for the sustainability of the company in the market. In determining costs, all the elements related to this concept must be considered; For which, the design of a production order cost system represents a favorable route, this being the model applied to structure a cost system in the company under study. As a methodology for the development of the research, the mixed approach and non-experimental design were used with a descriptive type of research. On the other hand, to determine the incidence of those costs in the determination of prices, the total cost model was applied; since, this takes into account the production costs and the costs of the period in which it has been incurred. As a result, an undervalued cost of the stairs was obtained, which led to a reduction in profit of approximately 70%; therefore, it is evident that the costs were not adequately established.