Cost Accounting is the basis for calculating the price of industrial aluminum profiles. The cost includes many aspects, first of all, raw materials; second, the cost of production in processing, and the cost of Labor Transportation Costs and post-processing costs, etc. All these costs add up to calculate the price of aluminum profiles.
1. RAW MATERIAL COSTS
This is the precondition of calculating every product. Customized Aluminium profiles are made of the aluminum bar as main raw material. The price of the aluminum bar is the important basis of aluminum bar price. There are many kinds of aluminum bars, which involve many aspects, such as alloy composition, size, quality of aluminum bars, service requirements, etc. This is an uncertain number, according to the market fluctuations give approximate reference price.
2. COST OF PRODUCTION
The production of aluminum profiles is a very complicated process, which involves many processes such as extrusion, aging and Surface Treatment. If Water and electricity are to be used, workers’ wages are to be paid, chemical reagents and other consumables are to be purchased, these expenses incurred in the production of aluminum profiles are to be included in the cost of production. As a basis for calculating the price of industrial aluminum products.
3. LABOR COSTS
This labor cost refers to the cost and expense of wages, living expenses, insurance expenses, communication expenses and transportation expenses of the workers when they assemble various industrial aluminum products. Labor cost is a large amount of cost The minimum wage, which is set by local governments according to local living standards, plus the different types of jobs, give different wages depending on the ease with which the jobs are available, or in some factories where there are labor shortages. Only by offering higher wages can workers be retained and the costs incurred in each stage of production be calculated.
4. TRANSPORTATION COSTS
The production of aluminum profiles to be transported to all parts of the country, the transportation method is express or logistics, the general length of the industrial aluminum profile is 6 meters, usually the use of logistics mode, with more than 6 meters of the truck to transport more convenient, halfway without a turnover. The calculation of logistics costs is based on the National Price Bureau Standard, depending on the distance and road conditions, by regional distance and weight, the local price bureau of the pricing standard is different.
5. PROCESSING COSTS
According to customer’s demand, the aluminum profile can be cut into any section, which is convenient to transport and use; if customer needs other colors, such as yellow, golden yellow or beige, need for additional electroplating, electrostatic powder spraying or electrophoretic coating, the surface treatment process is complex, need to spend a certain amount of time and labor costs, processing costs and transportation costs.