Page 257 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

Costs to make and sell
• Explain the costing system and methodology of the submitted cost details/
information
• Discuss what is in each cost item in the cost details

• Verify production volumes (or can we do this as part of the verification of
costs)
• Walk though costing system
• Discuss capture and allocation of variances
• Verification of cost to make data for completeness and relevance “upwards”
through management reports to audited financial statements
• Verification of actual costs of production ‘downwards’ to source documents
including invoices
• Verify as to how raw material costs are allocated to each grade of PUC.
Also confirm as to whether detailed technical norms are there for each such
grade
• Confirm unit costs for each grade of PUC based on production volume and
allocated costs for that grade.

• Direct labour - Verify allocation to each grade of PUC. We request that
scanned copies of supporting documents be provided at the visit.

• Manufacturing overheads
• Explain any variances and provide scanned copies of supporting documents
to be provided at the visit.
• Verification of administrative, selling and general expenses – both for
completeness and relevance up to management reports and audited financial
statements, and for accuracy of the allocation to different products.

Please prepare for the verification for POI by being able to show how the
costs in the various formats provided are a complete record by reconciling
this data through management reports to the audited financial statements.

Costs of Major Raw Material Purchases (including related party purchases/
captive purchases, to the extent available)
• Explain methodology with supporting document:

- Purchase order confirmation and or contact;

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