Costing Methods

One of two costing methods may be used to value a part in the software:

Standard - All transactions for a part are valued at a set standard cost.  Standard costs are established by the user at the beginning of a period, then revised at the beginning of the next period as needed.  Variations in cost within the period are charged to variance accounts.

Moving Average - The average unit cost for a part is recalculated by the system each time the inventory balance changes.