BOM Standard Cost Summary
This report will show a summary of all BOMs (parent items) that are listed in the system. The report will show the standard cost of all Purchased Items, the cost of the subassembly overhead and root parent overhead, the total exploded cost, the Item Master standard cost, and the standard cost variance.
- Item Number This is item identification no. Which is given in Item Master at the time of item entering and it is unique in ERPlite.
- Item Name This field is used to describe the name of the item listed in the database.
- Standard Cost Production or operating cost that is carefully predetermined. It includes Purchased and Cost type items. A standard cost is a target cost that should be attained. The standard cost is compared with the actual cost in order to measure the performance of a given costing department or operation. Variances, which are the differences between actual costs and standard costs, may indicate inefficiencies that have to be investigated. Corrective action may have to be taken.
- Overhead Cost In business, overhead, overhead cost or overhead expense refers to an ongoing expense of operating a business. The term overhead is usually used to group expenses that are necessary to the continued functioning of the business, but that do not directly generate profits. Typical examples of overhead expenses include rent, utilities, permits to operate a business, business name registration, and commercial liability insurance.
- Variance Variance is the difference between an Actual Cost and a pre-determined Standard Cost.A variance from standard cost is considered favorable if the actual cost is less than the standard cost, and it is considered unfavorable if the actual cost is more than the standard cost.
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