Current Costs

Current costs may be used to track fluctuations in cost during a fiscal period.  Typically, new standards are developed in the current cost buckets.  They are then rolled from current costs to standard costs at the beginning of a new year.  This procedure allows you to generate costs, review results, and make corrections, without affecting the standard costs.  Current costs are generated and maintained using three types of information:

·     The bill of material in effect at the time of costing.

·     The labor and machine information on the routing.

·     The current costs of purchased, transfer, and non-stocked parts.