Average Order Quantity

This field represents the typical quantity made when an item is manufactured.  Product Costing uses the Average Order Quantity and the Batch Quantity to calculate the Number of Batches for a fixed time operations with a batch sensitivity equal to yes.  The Number of Batches is then used to calculate labor and overhead costs.  If the batch sensitivity is equal to no, the product costing labor and machine hours are divided by the average order quantity to develop unit labor and overhead costs for a fixed-time operation.

Enter the average amount to order for the part.  If the Allow Cost Update field is 'Y', this cost will be automatically updated during order entry.