I wondered if anybody had used actual cost within their system? We are currently using standard costs however the massive fluctuations in pricing have made the cost a lot higher. We also have the UK standard of stock being realised at the lower of cost and NRV so this was a risk in our audit this year as our stock was not valued like this.
Userlevel 1
Hi Fiona, we have many customers using FIFO, AVG, AVGFIFO.
Each of them have there own specific ways of working but the they tend to have much less variances than STD.
How often are you revisiting the STD cost and updating, or like most raw materials is it moving too often to make that a viable option?
You can test each of the cost methods at a part level to see the differences in your Pilot/Test environment.
Thank you for your quick comment Gary! We have been updating these every quarter and proposal to do monthly but our Auditors are pushing for the actual cost - that is our next step to go into test environment to test this just did not want to waste time in looking at things that wouldn’t be an option so need to make certain actual cost is what we think it means
Reply
Enter your username or e-mail address. We'll send you an e-mail with instructions to reset your password.