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Former Member
Feb 28, 2014 at 02:35 AM

product costing approach



I have a client who is value added reseller of parts of OEM. They just do not resell but also do some technical configuration and some assembly of the parts bought from the OEM. I would like to seek some advice with respect to their costing approach. Since all their materials are purchased components I believe the price control should be 'V' (moving average price) on the material master.

Should they perform the costing run in this case based on the MAP? Even if they do, since the materials have V price control, prices set by CK40N have no relevance. Am I right?

Would appreciate any insights into this and approach to costing.