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Former Member
Oct 13, 2014 at 07:21 AM

Standard cost estimate in trading company


Dear CO gurus

My client is trading company(No production) and using Standard Cost.

Standard cost includes
- Product cost
- Inbound freight (3% of product cost)
- Duty(1% of product cost)

Inboud freight and duty is initially paid by forwarder like Fedex,
then charge in monthly basis.

My client wants to analyse variance of each cost element not only product cost,
but also freight and duty.

In this case, standard cost estimate with costing sheet is the best way?

We have no plan to use Order like internal order or service order.
Cost Center and CO-PA only.