Standard Schmanderd: A Look into Brewery Accounting
Standard costing sounds very simple. You set a standard and then you’re done, right?
The goal of this presentation is to highlight the differences between these methods, both in general as well as specifically for the beverage manufacturing industry.
A few of the topics we’ll cover include:
Defining a standard cost and maintaining it
Determining the frequency of updates necessary to keep costs current
Evaluating variances as opposed to dynamic margins
Connecting revenue to actual cost of goods sold
Handling landed costs, variable yields, volatile pricing
Analyzing costing errors, adjustments, or excessive variances
If you’re interested in learning more about beer accounting, please join us. If you’re one of those standard cost champions, let us change your mind.
Doozy Solutions works with beverage manufacturers in the beer, wine, spirits, RTD, and non-alc industries, and we address costing method questions all the time. Despite the fact that more modern methods and accounting systems have become commonplace, there still seems to be a group of holdouts who want to use standard costs. Our preference is to use a combination of lot numbered and average costing. This is the approach we recommend when implementing our Crafted ERP solution.
Crafted ERP by Doozy Solutions is an end-to-end brewery management system that enables brewers to automate and streamline every aspect of their businesses. Developed by brewers for brewers on NetSuite, the number one cloud ERP system in the world, Crafted provides a 360-degree view of the real-time, cross-operational information necessary to ignite growth, increase revenue, and unite your operations. Find out more at CraftedERP.com.
Andrew Koehring leads the Product team for Crafted ERP. Prior to joining Doozy, he worked in the brewing industry for 8 years in roles that cut across nearly every department. With his background in engineering, software, and business systems, he partners with customers to provide leading solutions for the beverage manufacturing industry.