EVMS Guideline 20 Design Considerations - Identification of Manufacturing Costs

ANSI Standard 748 Guideline 20 requires the organization to identify unit costs, equivalent unit costs or lot costs within the manufacturing accounting system. The manafacturing accounting system must be flexible enough to accomadate planning and performance measurement within an Earned Value Management System. This requires the capabilty of isolating unit and lot costs within the manufacturing environment. In work scope elements that call for equivalent units or lot cost budgeting, the manufacting accounting system must be able to identify actual unit costs, actual equivalent unit costs or actual lot costs.

In developing its Guideline 20 system description document, the organization should author procedures ensuring:

1. The organization provides unit costs, equivalent unit or lot costs in terms of labor, material, other direct, and indirect costs


2. The organization permits identification of recurring or nonrecurring costs as necessary