Clients like to measure the difference between the standard and actual cost of a work order. Since the standard "planned" cost uses the average cost which in my view point is very susceptible to errors as one error can drastically change the average and there is a major issue with average cost in 4.4, why do we not keep the planned cost on a more reliable basis by using the standard cost. This will make analysis of costs more accurate as the planned cost will be more consistent over a period of time and hence give us through variances. Futhermore, the costed bill of material report uses the average cost in the CI_Item file, yet we use the average cost in the warehouse file in WO planned cost. They should both use the same report. Lets give clients proper tools to do cost analysis

by: Avron K. | over a year ago | Manufacturing