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Former Member
Feb 17, 2011 at 06:12 AM

Standard Costing for 6 months

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We are thinking about running Standard Costing altogether for 6 months. Why because, the raw material prices are available only on a delayed basis. So we cannot run the standard cost estimate exactly on the period opening.

So we will rrun and release the cost estimate from period 1 to period 6 altogether. Regarding raw material, as and when it arrives the factory, we will update. Since we have already released the cost estimate for 6 months, this raw material posting will not have effect on the FG standard price.

I would like to know your points, what are the implications of the above ? i.e. FG standard price are updated at a stretch for 6 months and raw materials postings are done as and when they are available throughout these 6 months.