Dear Khun Natthaya,
Thank you so much for today session about 2014 budget preparation. I would like to hi-light some of the key comments/ inputs from the panel today ka
1. Expense Accrual:
a) Agree that in Oct, FN will ask each Dept to summarize on the expense accrual for 2013 (Any expense that required the payment until Feb 2014). Any expense that are not under accrual list, will be expense for 2014.
b) Apply as normal practice for 2013 on ward
2. Cost allocation vs. Cost Center:
a) Agree to have EO to be cost center for all expense for New Year Gift.
b) Agree to have GA to be cost center for wreath/ coffee etc
c) Some of the item that currently be allocated may need to review whether we should allocation/keep at cost center i.e. stationary/ IT supply etc
To have to good justification for cost center vs. cost allocation, would u please kindly summarize for our current practice regarding to these expense ka?
3. Project Expense
a) For 2014, if there is any key projects that foresee on how the expense & Time frame will be (i.e. Heat Seal/ NPD/ Low hanging Fruit/ Cost saving) we should classify under project base as well. This way, during budget justification we can review per project base.
4. Cost Driver Identification (Tuna Basis/ VAP/Petfood/Raw Pack)
Instead of having each core function (not support function) allocation the % contribution by themselve. I would think costing should be the one who suggest on which will be the right cost factor (i.e. % working hr/ No of PO/ No of headcounts) that each function should select to be their cost driver...rather than leave it to each dept to come up with their own factor.