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Former Member
Aug 17, 2007 at 03:38 PM

Implications of having Std price as the control price for raw materials

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Hi,

Can someone tell me what are the implications of setting standard price as the control price for raw materials, instead of moving average price?

One implication is that the purchase price variance get affected to large extend as the prices go up. But, would like to know what its impact would be on product cost planning.

Thanks,

Ram